Cosco Capital said the steady recovery of the economy has helped sustain consumer demand that has fueled revenue growth across its business portfolio that includes retailing via Puregold Price Club Inc. and S&R Membership Shopping Club, liquor distribution, commercial real estate, energy and minerals, and specialty retail. It added that its expansion strategies also bolstered earnings.
Of Cosco’s various business segments, the grocery retailing division—which includes Puregold and S&R—was the standout performer, contributing 69 percent of total net income. The liquor distribution segment followed with 22 percent, while the commercial real estate, energy & minerals, and specialty retail segments made smaller contributions, at 7 percent, 1.5 percent, and 0.5 percent, respectively.
The grocery retailing segment saw a notable increase in sales, with consolidated net sales rising 9.1 percent to P151.97 billion. This growth was driven by store expansions and higher same-store sales. Specifically, Puregold recorded a 3.5 percent SSSG, and S&R achieved 4.1 percent SSSG. These results were attributed to higher customer traffic and larger basket sizes. Puregold’s profitability also benefited from slightly improved gross margins in the S&R business.
Cosco’s liquor distribution business, operated through The Keepers Holdings Inc., also performed strongly, generating P11.7 billion in revenues—a 15 percent year-on-year growth. The volume of cases sold increased by 18 percent, led by Alfonso, the market-leading imported brandy. This premium brand’s performance, along with a rebound in the on-premise channel, contributed to a 20 percent rise in net income for the liquor segment, which reached P2.17 billion.
Meanwhile, the commercial real estate segment saw steady progress, posting a 10 percent increase in rental revenue, amounting to P16 million. This was attributed to improved tenant operations and the full resumption of rental rates.
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