Puregold earmarks as much as P4.7B for 2021 capex

Puregold Price Club Inc. is set to spend as much as P4.7 billion this year, with the biggest chunk going to the expansion of new stores across the country.

In a regulatory filing, Puregold said it earmarked a capital expenditure (capex) budget of P4.1 billion to P4.7 billion this year, with P1.7 billion to P2.3 billion for 30 to 40 new Puregold stores.

The budget also includes P1.6 billion for two S&R stores, P200 million for 10 S&R quick-service restaurants (QSR), and P600 million for maintenance.

Puregold in the same filing reported an 18.9% increase in net income to P8.053 billion, an 12.4% growth in gross profits to P29.16 billion in 2020, with net sales up 9.2% to P168.83 million.

The company operates several retail formats and store brands, including Puregold Junior as neighborhood stores, Puregold Extra as small stores, and S&R Membership Shopping warehouses. Most of the merchandise are imported brand names mostly sourced from the United States.

The company ended 2020 with a total of 469 stores — 244 hypermarkets; 100 supermarkets; 59 extras; 20 S&Rs; and 46 S&R QSRs.

Puregold also owns Estenso Equities Inc., the holding company for Ayagold Retailers Inc. and San Roque Supermarkets.

Shares in Puregold opened Tuesday at P40.20 apiece, higher than Monday's finish of P40.00. —KBK, GMA News