Business

Lucio Co to spend P4.7B for expansion of Puregold, S&R

Puregold Price Club Inc. will resume a more aggressive capital spending this year with a maximum budget of P4.7 billion as it seeks to further expand its footprint nationwide.

The 2021 capex is higher than the P3.4 billion allotted last year.

In a regulatory filing, the Lucio Co-led company said nearly half or P2.3 billion would go to the construction of 30 to 40 new Puregold stores while P1.6 billion had been set aside to build 2 S&R outlets and P200 million for 10 S&R QSR restaurants.

About P600 million will serve as maintenance capex.

The company aims to strengthen and open additional cores-dock facilities for Puregold, build new and bigger distribution center for S&R as well additional capacity for store to shopper delivery.

Puregold ended 2020 with a total of 469 stores comprising 403 Puregold, 20 S&R and 46 S&R QSRs.

It had a solid year despite the pandemic with net income rising 18.9 percent to P6.77 billion on the back of a 9.2 percent hike in sales to P168.6 billion.

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