Lucio Co’s Cosco to enter renewable energy space

MANILA, Philippines — Retail tycoon Lucio Co is expanding into the renewable energy (RE) business, looking at it as an opportunity to further grow his business empire. 

In a regulatory filing, Co’s listed retail holding company Cosco Capital said it would enter the renewable energy space. 

“Cosco Capital is looking at its entry in the renewable energy business as another opportunity segment to expand and become a profitable business 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,” Cosco Capital president Leonardo Dayao said. No other details were immediately available regarding its plan.

This developed as the company reported a 4.8-percent growth in its January to September income  to P9.1 billion from P8.7 billion a year ago. 

The company raked in consolidated revenues of P150.3 billion, up 10.5 percent from P136 billion a year ago. 

Of the different segments, the group’s grocery retailing businesses, Puregold Price Club Inc. and S&R Membership Shopping Club, contributed 72 percent of total net income, followed by the liquor distribution with 20 percent and commercial real estate segment with a seven-percent share.

The grocery retailing segment’s consolidated net sales during the nine-month period  rose by nine percent to P139 billion, driven by higher comparative sales, translating to a  P6.6-billion net income for the period, up by 2.1 percent from a year ago. 

Likewise, the liquor distribution business through The Keepers Holdings Inc. booked a consolidated revenue of  P10.2 billion, a 14-percent growth from a year ago on the back of a six-percent growth in volume of cases sold for the review period.

This was driven principally by Alfonso, the leading imported brandy in the market, which has already surpassed its pre-pandemic levels. 

Net income for the liquor segment rose by 13 percent to P1.8 billion during the nine-month period, resulting from the strong sales performance from imported brandy, spirits, wines, and specialty beverages. 

The commercial real estate segment posted a 7.8-percent growth in rental revenue amounting to P1.4 billion during from January to September.

The real estate segment saw its net income grow by 7.7 percent to P672 million during the nine-month period. 

For the specialty retailing business segment, Office Warehouse Inc.’s revenues grew by 10.5 percent to P1.66 billion as it continued to see a strong recovery from its business operations. This translated to a net income of P63.6 million, up 18 percent from a year ago.