Cosco Capital profit up slightly at P12.4B

COSCO Capital Inc., the listed retail holding fiRM OF businessman Lucio Co, said net income in 2023 edged up by 1 percent to p12.4 billion, from p12.3 billion in the previous year, amid growth across all business segments.

Consolidated revenues rose 8.8 percent to P214.5 billion from P197.1 billion as the group benefited from the continued economic recovery and higher consumer spending, the company said in a statement on Friday.

Its retailing businesses, Puregold Price Club Inc. and S&R Membership Shopping Club, accounted for 69 percent of total earnings while liquor distribution and the commercial real estate segments contributed 24 percent and 7 percent, respectively.

The grocery retail group’s net sales totaled P199 billion, up 8 percent year on year, anchored on increased comparative sales, but net income for the group was down 7.4 percent to P8.6 billion.

Cosco said the improved topline was partly offset by lower margins due to aggressive store network expansion, initiatives to remain competitive and grow market share, and increased retirement benefit expenses.

The liquor business, led by The Keepers Holdings Inc., was said to have achieved a “record” net income of P2.9 billion, up 30 percent, on robust sales of imported brandy, spirits, wines and specialty drinks.

Revenues in this segment rose 17 percent to P16.3 billion, driven by a 9-percent growth in the volume of cases and with the Alfonso brand already topping pre-pandemic levels.

In the real estate segment, net income rose 10.4 percent to P933 million from P845 million. This was driven by a 7-percent growth in rental revenues to P1.95 billion amid booming economic activities and the full resumption of contract-based rental rates.

Office Warehouse Inc., the group’s specialty retail unit, saw net income grow 14 percent to P78 million from P69 million, while revenues soared 20 percent to P2.15 billion amid a strong recovery in its operations.

Cosco Capital shares fell 1.62 percent to close at P4.87 each on Friday as the benchmark Philippine Stock Exchange index slipped by 0.27 percent.