The Puregold Price Club Inc. (PGOLD) is making big steps to welcome new acquisitions this year. The report of the stock exchange on February 21, 2019, Tuesday, says that the firm’s Board of Directors has already approved the proposal to authorize P5 Billion worth of capital stock. According to this company, the changes will be presented to its stockholder for further approval. The new capital stock will consist of 5 Billion shares having P1 par value each. This is 60% higher than the original capital stock of P3 Billion.
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According to John Marson T. Hao, the PGOLD Vice-President for Investors Relations, the firm’s is already in its maximum authorized capital. Just recently, the firm sold 104 million common shares valued at P45 per share through raising P4.69 Billion for its capital expenditures and possible acquisitions this 2019. Thus, the plan to increase their capital stock would allow them to sell more of its shares without going beyond the threshold. Mr. Hao also added that this is to get the firm prepared for great opportunities coming this year, acquisitions as a good example.
PGOLD is also set to open more stores this year. This might also be one of the reasons why there will be a hike in capital. The goal is to open a total of 25 stores this 2019, which is in line with the annual target of the firm. In fact, it’s been years since the company is targeting 25 stores to open yearly so they will expand not only within the Metro but as well as in the provinces.
The company also targets to open 4 new S&R stores where clients can get their typical membership. Half of it will be built outside Metro Manila while the other two will be in Southern Luzon and in the metro. The schedule is to open two this year and two next year, 2020.
In 2018, the firm has generated an attributable net income of P4.62 Billion, 18% higher, during the first 3 quarters. The revenue has also gone up by 14%, P102.64 Billion in figures. Meanwhile, the company has ended up having 14% higher, or P99.82 Billion, system-wide sales.
At the end of the third quarter, PGOLD has a total of 397 stores in the country, 345 of them are Puregold stores, 36 are S&R New York Style stores and 16 are S&R membership warehouse stores. The past acquisition of Nueva Ecija-based NE Bodega supermarket and Budget Lane in Luzon has supported the firm’s nationwide expansion.