Cosco Capital income up 20.7% to P2.7 B

MANILA, Philippines — Lucio Co’s retailing giant Cosco Capital Inc. grew its net profit by 20.7 percent to P2.66 billion, driven by continued economic growth and higher consumer spending as a result of the tax reform law.

The group’s retailing business, through Puregold Price Club Inc. and S&R Membership Shopping Club, contributed 59 percent of the total earnings.

Consolidated net income of Puregold and S&R Warehouse clubs rose 23.8 percent to P3.08 billion as revenues went up by 13.2 percent to P64.03 billion.

This developed as the group opened 15 new Puregold stores, two new S&R Warehouse Clubs and four new S&R QSR.

The commercial real estate segment posted a 7.5 percent increase in earnings as revenues increased 7.6 percent to P1.22 billion.

Revenues from the liquor business jumped 48.8 percent growth to P3.73 billion on the back of a 44 percent jump in volume of cases sold with growth primarily driven by the increase in sales of Alfonso Light Brandy and Alfonso Brandy.

The group’s specialty retailing segment, comprising Liquigaz Philippines Corp. and Office Warehouse Inc., accounted for nine percent of net profit.

Liquigaz reported a nine percent drop in profit to P233 million even as revenues increased by 28 percent to P7.59 billion due to higher sales volume and the recovery in global LPG prices.

Office Warehouse, on the other hand, saw revenues grow 15.1 percent to P1.01 billion. It currently has 85 stores operating.