Puregold Price Club Inc. (PGOLD) expects sustained bottom line growth in the fourth quarter of the year as the Christmas season fuel sales growth.
In a phone interview, Puregold president Leonardo B. Dayao said the supermarket operator will expand its profit by 18-20% this year.
“I’m optimistic we can sustain our growth momentum in the fourth quarter. It’s the Christmas season, you get a much bigger contribution in the fourth quarter than in any other quarter,” Dayao said.
Historically, the October to December period accounts for nearly a third of the business. The growth in earnings will be supported by a 17% expansion in sales.
Lucio Co-owned Puregold saw a rebound in earnings in the first 9 months of the year, getting a boost from higher sales and rising supplier volume discounts to push profit by 13.8% to PHP 3 billion from PHP 2.64 billion last year.
Excluding onetime capital market earnings last year, recurring net income climbed by a fifth from the prior year. This reversed the 6.6% drop in earnings in the first half when Puregold was hit by lower interest earnings and declining margins.
The food retail giant had projected to sustain this year its gross profit margin of 17.4% and net profit margin of 5.4% in 2013.