MANILA, Philippines – Supermarket chain Puregold Price Club Inc. reported a 6.6 percent drop in its net income for the first half of the year due to declining margins and absence of interest income.
In a disclosure to the stock exchange, Puregold said its net income dropped to P1.65 billion in the first half of 2014 from P1.77 billion in the same period last year.
The company attributed the decline to the absence of interest income recognized last year, which came from the short-term investment of the proceeds from the P5 billion corporate notes issued by the company.
On a recurring basis, Puregold's first half net income would have increased by 0.9 percent as consolidated net sales jumped 16.8 percent to P38.5 billion from P33 billion in the same period last year.
The sales growth was driven by the continuing expansion in sales turnover of the 228 Puregold and S&R stores operating as of June 30, 2014, the company said.
Puregold opened 15 new stores in the first half, with 10 more expected to be opened within the year.
The Lucio Co-owned Puregold is consolidating two duty-free shops, also owned by the Co family, in Clark and Subic.
The company expects the the consolidation of these two duty-free stores, which generate P200 million in sales monthly, to contribute to Puregold's earnings.