Lucio Co’s Cosco Capital posts flat earnings
COSCO CAPITAL, Inc. reported flat earnings in the third quarter, as sales and expenses grew at the same pace.
In a regulatory filing, the retail holding firm of tycoon Lucio L. Co said its net income attributable to equity holders of the parent company stood at P1.21 billion for the July to September period, versus P1.22 billion during the same period a year ago.
Third quarter revenues increased by an annual 14% to P35.7 billion, while cost of goods and services likewise went up 14% to P29.7 billion.
For the nine- month period, Cosco Capital said its net income attributable to equity holders of the parent company rose by 5.6% to P3.42 billion, on the back of a 12% growth in revenues to P101.86 billion.
The company attributed the higher revenues to the sustained organic growth from its grocery retail unit, acquisition of new commercial real estate assets, and improved revenue contribution from liquor and wine distribution segments.
More than half or 58% of profits came from Puregold Price Club, Inc. and S&R Membership Shopping Club, followed by the commercial real estate segment with 23% and the liquor distribution with 12%. Its specialty retailing segment, which includes Liquigaz Philippines Corporation and Office Warehouse, Inc. made up 12% of Cosco’s profit.
Its grocery retail business under Puregold and S& R saw a 7% increase in net income to P3.89 billion for the ninemonth period, driven by its 11% rise in net sales to P87.56 billion. However, cost of sales also went up by 11% to P73.11 billion during the same period.
“New stores put up in 2016 were fully operating in 2017, increasing consolidated net sales in addition to robust like-for-like stores sales growth and revenue contributions from new organic stores,” Cosco Capital said.
The company opened a total of 17 new Puregold stores, 1 new S&R membership club and 8 new S&R New York Style quick service restaurants during the January to September period.
For the commercial real estate segment, Cosco said its consolidated net income contribution went up 3% to P801 million during the first nine months of the year.
The liquor distribution business contributed P413.5 million in net income, 9% up from a year ago, despite lower revenues from its Fundador brandy category after Emperador, Inc.’s takeover of Bodegas Fundador.
Under its specialty retail segment, Liquigaz Philippines generated P391.4 million in earnings during the nine- month period, 27% more than the previous year. This was due to a 34% rise in revenues to P9 billion “mainly driven by increase in sales volume and the gradual recovery in global LPG prices during the period.”
Office Warehouse posted P58.7 million in income for the ninemonth period, 7% up from a year ago, as it added nine new stores.
“We are pleased with our financial and operational results for the first 9 months of the year. Our subsidiaries are continuously generating positive returns. We remain optimistic that 2017 will be a banner year for Cosco Capital on the back of a strong economy and robust consumption of the Filipino household,” Cosco Capital President Leonardo B. Dayao was quoted as saying in a statement.
On Thursday, shares in Cosco Capital went up 0.38% to P8 apiece, while Puregold shares rose 1.85% to P49.50 each.