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PriceSmart T&T records double digit growth
T&T is one of three countries where PriceSmart reported double digit sales growth for the three-and six-month periods ended February 28, according to the company’s latest Securities and Exchange Commission (SEC) filing. Comparing both the three and six month periods ended February 28 with the same period in 2013, PriceSmart saidg: “The company recorded positive sales growth in nearly all countries, the exception being Jamaica which has experienced a significant devaluation of its local currency over the past year (11.7 per cent). The company recorded double digit sales growth in Panama, Trinidad, and Aruba.”
Colombia and Costa Rica also experienced strong sales growth, with the addition of sales from one new warehouse club in each country “despite recent local currency devaluations in both markets,” PriceSmart said. Total net warehouse sales growth of 11 per cent during the three months ended February 28 resulted from a 10.2 per cent growth in transactions and a 0.7 per cent growth in average ticket. Sales for the six months ended February 28 continued to reflect positive sales growth in all countries. Additional sales from new warehouse clubs in Colombia and Costa Rica during the six months ended February 28, compared to the corresponding period last year, contributed an 11.8 per cent increase in sales, PriceSmart said. For the three months ended February 28, PriceSmart’s net income was US$28.27 million, up from the same period in 2013 when net income was US$24.88 million.
Giving other financial highlights for the second quarter of 2014, PriceSmart said its net warehouse club sales increased 11 per cent over the comparable prior year period. The company ended the quarter with 32 warehouse clubs compared to 30 at the end of the second quarter of fiscal 2012. Comparable warehouse club sales—sales in the warehouse clubs that have been open for more than 13.5 calendar months—for the 13 weeks ended March 2, grew 6.7 per cent. Membership income for the second quarter of fiscal year 2014 increased 13.9 per cent to US$9.5 million.
Warehouse sales gross profits in the quarter increased 9.6 per cent over the prior year period and warehouse sales gross profits as a per cent of net warehouse sales were 14.5 per cent, a reduction of 19 basis points from the same period last year.
Selling, general and administrative expenses decreased four basis points as a percentage of sales compared to the second quarter of last year, PriceSmart said. Operating income for the second quarter of 2014 was US$39.4 million, an increase of US$3.0 million over the second quarter of 2013. The company had a US$712,000 net gain from currency exchange transactions in the current quarter compared to a US$263,000 net loss from currency exchange transactions in the same period last year. Net income for the second quarter of fiscal year 2014 was US$28.3 million, or US$0.93 per diluted share, compared to US$24.9 million, or US$0.82 per diluted share, in the comparable prior year period. In a table summarising agreements for which PriceSmart has recorded cash flow hedge accounting transactions during the six months ended February 28, PriceSmart showed a US$8.9 million loan from RBC taken out in November 2008.