Manila, Philippines - Cosco Capital, Inc., the listed retail holding firm of Mr. Lucio L. Co, reported a 4.8% growth in its nine months consolidated net income amounting to Php 9.1 billion versus Php 8.7 billion a year ago. Strong operating performance from all business segments also lifted consolidated revenues by 10.5% to Php 150.3 billion from Php 136 billion in the same period of 2022.
The Group continued to benefit from the economic recovery amidst the prevailing macroeconomic challenges by way of sustained and stronger revenue growth across all its business segments which indicates the recovering consumer demand.
During the nine months period of 2023, the group's grocery retailing businesses, Puregold Price Club, Inc. and S&R Membership Shopping Club, contributed 72% of total net income, followed by the Liquor Distribution with 20% and Commercial Real Estate segment with 7%.
The grocery retailing segment’s consolidated net sales for the first nine months of 2023 rose by 9% to Php 139 billion driven by higher comparative sales. In the first nine months, the Puregold enterprise experienced positive same store sales growth (SSSG) of +4.8% from Puregold Stores and +4.1% from S&R Warehouse clubs driven primarily from higher traffic. SSSG trends continued to normalize starting in the second quarter as a contrast to the more flattering base effects felt in the first quarter of this year. The company continues to see a buoyant trajectory in topline growth for the balance of the year. The grocery retail group’s net income for the period rose by 2.1% year on year to Php 6.6 billion. The grocery retail’s 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 10.2 billion, a 14% growth versus previous year on the back of a 6% 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 13% to PHP 1.8 billion in the first nine months of 2023 resulting from the strong sales performance from imported brandy, spirits, wines, and specialty beverages.
The Commercial Real Estate segment posted a 7.8% growth in rental revenue amounting to PHP 1.4 billion in the first nine months of 2023 as business operations of its tenants portfolio has improved due to 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 7.7% to PHP 672 million in the first nine months of 2023 versus Php 623 million in the same period 2022.
For the Specialty Retailing business segment, Office Warehouse, Inc.’s revenues grew by 10.5% at PHP 1.66 billion as it continued to see a strong recovery from its business operations registering a +20.6% same stores sales growth as compared to its 2022 level. Net income improved by 18% to Php 63.6 million in the first nine months of 2023 from Php 54 million in the same period 2022.
“Cosco Capital Inc. is looking at its entry in the Renewable Energy business as another opportunity segment to expand and become a profitable business portfolio in the medium and long term. This will align Cosco with the government’s thrust in renewable energy and contribute to the economic development of our country.” Said Mr. Leonardo Dayao, President of Cosco Capital Inc. |
Disclaimer:
The press release contains statements about future events and expectations that constitute “forward-looking statements”. These forward-looking statements reflect the Group’s views at the time such statement were made with respect to future events and are not a guarantee of future performance or developments. Actual results and events may differ materially from information contained in the forward-looking statements as a result of number of factors, including but not limited to any changes in the laws, rules and regulations relating to any aspects of the Group’s business operations, general economic, market and business conditions, including capital market developments, and other factors beyond the Group’s control.
Please see attached SEC 17-C Report of the Company |