Cosco Capital’s profit grew 14% to P3.1b in first quarter

COSCO Capital Inc., the listed retail holding firm of businessman Lucio Co, said Thursday three-month net income expanded 14.4 percent to P3.1 billion from P2.7 billion in the same period last year, driven by strong performance of retail and liquor businesses.

First-quarter consolidated revenues jumped 16 percent to P47.5 billion from P40.7 billion, the company said in a disclosure to the stock exchange.

“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,” Cosco said.

It also attributed the double-digit growth in net profit to the gross margin enhancement strategies it implemented and the sustained strategic cost and expense management which slowed down the growth in expenses versus revenues.

The group’s grocery retailing businesses under

Puregold Price Club, Inc. and S&R Membership Shopping Club contributed 78 percent of total net income in the first quarter, followed by the liquor distribution with 13 percent and commercial real estate segment with 9 percent.

Puregold booked first-quarter net income of P2.4 billion, up 12 percent year-on-year, as net sales rose 15 percent to P44.4 billion.

Liquor firm The Keepers Holdings Inc. saw its net income increase 26.5 percent to P420 million on strong sales of imported brandy, wines, spirits and specialty beverages.

Consolidated revenues amounted to P2.9 billion, a 33.6-percent growth versus the previous year on the back of a 30-percent increase in volume of cases sold.

The commercial real estate segment also posted a 8.7 percent growth in rental revenue amounting to P488 million in the first quarter as business operations improved due to easing mobility restrictions, increased level of economic activities and full resumption of rental rates based on contracts.