Puregold earmarks PhP2.6-B capex for 2016

MANILA, Dec. 11 (PNA) — Puregold Price Club Inc. is allocating PhP2.6 billion as capital expenditure (capex) next year for the expansion of its supermarket chains and convenience store, the company’s Vice President for Investor Relations John Marson T. Hao said on Friday.

Hao mentioned that PhP1.0 billion will be allotted for 25 new Puregold stores, particularly expanding the footprint of the supermarket chain in Northern Luzon, Visayas, and Mindanao.

In the next five years, the listed firm targets to open 25 stores nationwide.

The PhP1.0-billion capex for Puregold stores is still on top of acquisition budget and conversion of acquired local supermarkets such as the NE Supermarket in Nueva Ecija and BudgetLane in Rizal.

Puregold will end 2015 with 257 Puregold stores, nine NE Supermarket, and eight BudgetLane stores.

Another PhP1.0-billion will be set for expansion of S&R stores in provincial areas. Hao said the company targets to put up two S&R stores in 2016.

Some PhP450 million will be allotted for 74 Lawson convenience stores next year and around PhP150 million for its quick services restaurant.

Puregold’s capex for 2016 is lower than this year’s capex of PhP4.0 billion, which was trimmed from the initial budget of PhP5.5 billion announced by the company December last year.

Puregold President Vincent Co explained that the lower capex next year is an adjustment of the budget as actual cost of putting up new stores is less than its allocation. (PNA)