Cosco Capital, Inc., the listed retail holding firm of billionaire Lucio Co, reported Friday a 4.8 percent growth in nine-month net income to P9.1 billion amid a steady recovery in consumer demand.
Cosco Capital, whose store brands include the Puregold Price Club Inc. and S&R Membership Shopping Club, said the strong operating performance of all its business segments helped lift consolidated revenue nearly 11 percent to P150.3 billion from only P136 billion during the period.
The group’s grocery retailing businesses under Puregold and S&R contributed 72 percent of total net income, followed by liquor distribution at 20 percent and commercial real estate at 7 percent.The grocery retailing booked nine-month net sales of P139 billion, up 9 percent, driven by higher traffic in various Puregold and S&R stores. The company said it continues to see a buoyant trajectory in topline growth for the balance of the year.
Liquor distribution, via its unit The Keepers Holdings Inc., saw total revenue rise 14 percent to P10.2 billion on the back of a 6 percent growth in volume of cases sold during the period. This was driven principally by Alfonso, the leading imported brandy in the market.
The commercial real estate business posted a 7.8 percent growth in rental revenue to P1.4 billion as the business operations of its tenants portfolio improved due to increased level of economic activities as well as full resumption of rental rates based on contracts.
Cosco Capital said its specialty retailing business under Office Warehouse Inc. booked an 11 percent growth in revenue to P1.66 billion as it continued to see a strong recovery if its business operations, with same store sales up 21 percent.
Meantime, Cosco Capital president Leonardo Dayao is optimistic the company’s diversification into renewable energy will help lift bottom line in the future.
“Cosco Capital is looking at its entry in the renewable energy business as another opportunity segment to expand and become a profitable 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,” he said.
