Cosco Capital income up 8% in Q1

MANILA, Philippines - Cosco Capital Inc., the retail holding firm of Lucio Co, grew its first quarter net income by eight percent to P1.8 billion as revenues increased 12.3 percent.

The group’s businesses are Puregold Price Club Inc and S&R Membership Shopping Club which contributed 56 percent, real estate (22 percent), liquor (12 percent) and specialty retailing segment, composed of Liquigaz Philippines Corp. and Office Warehouse (nine percent) of Cosco’s total earnings.

“Our first quarter results signal a good start for the year. We are hopeful that this positive trend will continue throughout 2017,” said Cosco Capital president Leonardo Dayao.

Across the different segments, grocery retail business, comprising of Puregold Price Club Inc. and S&R Membership Shopping Club grew its consolidated revenues 11.2 percent to P27.5 billion.  

During the period, the group opened six new Puregold stores and one new QSR.  It targets to open 25 new Puregold stores and two new S&R warehouses this year. 

The liquor distribution business posted a four percent growth in revenues to P1.17 billion, on the back of a 29 percent increase in volume of cases sold during the quarter.

Revenues from Liquigaz increased 33 percent to P3 billion mainly driven by the gradual recovery in global LPG prices.

Office Warehouse Inc., which operates 72 retail outlets, grew first quarter revenues 18 percent to P440 million.

It plans to add 10 new stores this year in order to cater to the growing demand for office, school, and technology products in the country. 

The group’s commercial real estate segment, on the other hand, reported a nine percent growth in net income to P256 million even as revenues declined four percent to P552 million.