C05760-2023

SECURITIES AND EXCHANGE COMMISSIONSEC FORM 17-C

CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER

1. Date of Report (Date of earliest event reported)
Jul 27, 2023
2. SEC Identification Number
147669
3. BIR Tax Identification No.
000-432-378
4. Exact name of issuer as specified in its charter
Cosco Capital, Inc.
5. Province, country or other jurisdiction of incorporation
Manila, Philippines
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
No. 900 Romualdez St., Paco, Manila Postal Code 1007
8. Issuer's telephone number, including area code
09178612459
9. Former name or former address, if changed since last report
None
10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA
Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
Common Shares 7,168,814,764
11. Indicate the item numbers reported herein
Other Matters

The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.

Cosco Capital, Inc.COSCO

PSE Disclosure Form 4-31 - Press Release References: SRC Rule 17 (SEC Form 17-C)
Section 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

Press Release entitled "Cosco Capital net income hits PHP 6 billion in 1H 2023"
Background/Description of the Disclosure

Manila, Philippines - Cosco Capital, Inc., the listed retail holding firm of Mr. Lucio L. Co, reported a 7.8% growth in its first half consolidated net income amounting to Php 6 billion versus Php 5.6 billion a year ago. Strong revenues from all business segments also lifted consolidated revenues by 12.3% to Php 98.2 billion from Php 87.4 billion in the same period of 2022.

The Group continued to benefit from the economic recovery amidst the prevailing macroeconomic challenges by way of higher revenue growth across all its business segments which indicates the recovering consumer demand.

In the first half of 2023, the group's grocery retailing businesses, Puregold Price Club, Inc. and S&R Membership Shopping Club, contributed 73% of total net income, followed by the Liquor Distribution with 19% and Commercial Real Estate segment with 8%.

The grocery retailing group’s consolidated net sales for the first half of 2023 rose by 11% to Php 91 billion driven by higher comparative sales. In the first half, groupwide same stores sales was up 7% versus the same period last year as traffic was higher by 6.7% and basket were flattish at 0.2% year on year. Broken down by banners, the enterprise experienced positive same store sales growth (SSSG) of +5.9% from Puregold Stores and +9.5% from S&R Warehouse Clubs. SSSG tended towards more normalization starting in the second quarter as a contrast to the more flattering base effects felt in the first quarter of this year. The grocery retail group’s net income in the first half rose by 4.8% year on year to Php 4.4 billion. For the period, double-digit topline growth was partially offset by compressed margins and higher operating expenses.

The Liquor Distribution business thru The Keepers Holdings Inc. has recorded a consolidated revenues amounting to Php 6.5 billion, a 19% growth versus previous year on the back of a 10% growth in volume of cases sold for the period. This was driven principally by Alfonso, the leading imported brandy in the market, which has already surpassed its pre pandemic levels, premiumizing market and on-premise channel rebound. Net income for the liquor segment rose by 18% to PHP 1.16 billion in the first half of 2023 resulting from the strong sales performance from imported brandy, wines, and specialty beverages.

The Commercial Real Estate segment posted a 9.8% growth in rental revenue amounting to PHP 952 million in the first half of 2023 as business operations of its tenants portfolio has improved due to easing mobility restrictions and increased level of economic activities as well as full resumption of rental rates based on contracts. The real estate segment saw its net income grew by 9.2% to PHP 463 million in the first half of 2023 versus Php 424 million in the same period 2022.

For the Specialty Retailing business segment, Office Warehouse, Inc.’s revenues grew by 32% at PHP 1.04 billion as it continued to see a strong recovery from its business operations as compared to its 2022 level which were still affected by the pandemic restrictions. Net income improved by 38% to Php 35 million in the first half of 2023 from Php 26 million in the same period 2022.
Other Relevant Information

Please see attached SEC 17-C Report of the Company
Filed on behalf by:
Name Candy Dacanay-Datuon
Designation Assistant Corporate Secretary / Compliance Officer