Puregold reports record 2025 earnings on sales growth, margin gains

Insider Spotlight

• Net income climbs 8.8 percent to P11.34 billion on higher sales
• Revenue grows 10.6 percent, driven by store expansion, same store sales growth
• Operating income up 13.7 percent, outpacing top-line growth
• Margins broadly steady, with slight net margin compression
• P5.67 billion total dividends declared, yield near 4.9 percent

Puregold Price Club Inc. grew full-year net income to P11.34 billion for 2025, up 8.8 percent from the prior year — a record for the Lucio Co-controlled mass market retailer — as stronger sales and improved gross margins offset rising operating costs, according to its filing.

The big picture

Revenue rose 10.6 percent to P242.45 billion, reflecting resilient consumer demand and network expansion. Same-store sales growth reached 4.1 percent in Puregold stores, while S&R warehouse clubs posted 6.1 percent growth, driven by higher traffic and basket size, the company said in a disclosure to the Philippine Stock Exchange on Tuesday, April 7 2026.

Gross profit increased 14.8 percent to P45.35 billion, lifting gross margin to 18.7 percent from 18.0 percent a year earlier. Operating income rose faster than revenue, up 13.7 percent to P17.29 billion, indicating improved cost absorption despite expansion.

But net margin edged slightly lower to 4.7 percent from 4.8 percent, suggesting pressure from higher operating expenses, which jumped 15.5 percent during the year.

What’s driving growth

The company credited topline gains and margin improvements for earnings growth, supported by store openings and acquisitions. In 2025, Puregold opened 28 new stores, added S&R sites, and acquired 153 Puremart outlets, ending the year with 784 locations nationwide. 

The board approved total dividends of P5.67 billion, equivalent to a 4.925-percent yield. This includes a regular payout of P3.4 billion and a special dividend of P2.27 billion, reflecting a combined payout ratio of 50 percent.

What they’re saying

“Our record-breaking earnings underscore the resilience of our core businesses,” said Puregold president Ferdinand Vincent Co, citing expansion into provincial markets and investments in accessibility and convenience.

While revenue momentum remains solid, faster expense growth could cap margin expansion. Still, operating income growth ahead of sales signals improving efficiency at scale.

What’s next

Management plans to accelerate store expansion in underserved regions while maintaining focus on value offerings, positioning the company for sustained long-term growth despite competitive and cost pressures. —Daxim L. Lucas |Ed: Corrie S. Narisma