Cosco Capital hits record P4.5 B earnings

MANILA, Philippines - Cosco Capital Inc. hit record earnings last year and hopes to continue the momentum this year on robust consumer spending.

The retail holding firm of Lucio Co said net income jumped 12 percent in 2015 to P4.49 billion from P 4.03 billion the previous year.

“With continued economic growth and strong consumer sentiments, we believe that we can achieve another record year of profits in 2016,” Cosco president Leonardo Dayao said.

Cosco’s consolidated net income, meanwhile, reached P6.99 billion, up 12 percent from P6.24 billion in the 2014.

Net income after taking out minority interest from the retail business unit contributed 57 percent of the profits, followed by real estate leasing at 23 percent, liquor distribution at 15 percent, and specialty retail at 10 percent.

Year-on-year, net income for the retail business unit increased 11 percent, while real estate leasing unit and liquor distribution business unit rose seven percent and nine percent, respectively.

“All our operating business units have achieved record profits in 2015.” Dayao said.

Cosco’s consolidated revenues for 2015 also jumped 18 percent to P116.75 billion from P98.79 billion in 2014.

The firm’s retail business segment consisting of Puregold and S&R contributed 83 percent of total revenues while specialty retail from Liquigaz and Office Warehouse comprised 11 percent.

Puregold group’s net sales grew to P97.17 billion in 2015 due to the strong consumer demand from its 255 Puregold stores, 10 S&R Membership stores and 16 S&R QSR stores.