Cosco net income rises 16% to P3.97 B in 9 months

MANILA, Philippines — Cosco Capital Inc., the retail holding firm of Lucio Co, grew its net income 16.1 percent to P3.97 billion in the nine months to September, driven by strong retail spending.

Its consolidated net income grew 16.8 percent to P6.27 billion during the period. 

Among the different businesses, the group’s grocery retailing businesses, Puregold Price Club Inc. and S&R Membership Shopping Club contributed 59 percent of total profits.

The commercial real estate segment accounted for 22 percent of the pie, while the liquor distribution contributed 13 percent. The group’s specialty retailing segment, composed of Liquigaz Philippines Corp. (Liquigaz) and Office Warehouse Inc., accounted for 10 percent of net profit.

In terms of revenues, Puregold Price Club and S&R Membership Shopping Club churned in P99.8 billion during the nine-month period, up 14 percent.

The group opened 21 new Puregold stores, two new S&R Warehouse Clubs and five new S&R quick service restaurants (QSR) during the period. 

Puregold reported a consolidated net income of P4.62 billion during the period, up 18.4 percent compared to the P3.9 billion a year ago. 

Puregold stores registered stronger than expected same store sales growth (SSSG) of 5.8 percent during the period, while S&R registered a SSSG of 8.8 percent during the same period. 

As of end September, Puregold group has a total of 397 stores nationwide. These include 345 Puregold stores, 16 S&R membership shopping warehouse, and 36 S&R New York Style QSR.

“We are on track in delivering 25 new Puregold stores and two new S&R warehouse as part of our store network expansion in 2018,” it said.

Another strong performer was the liquor distribution business, which posted a 40.4 percent growth in revenues to P5.7 billion. There was a 42 percent increase in volume of cases sold during the period. 

The growth is primarily driven by the increase in sales of Alfonso Light Brandy and Alfonso Brandy. 

For the specialty retailing business segment, Liquigaz Philippines Corporation generated a 38 percent increase in revenues to P12.4 billion mainly driven by increase in sales volume and the recovery in global LPG prices during the period.

However, net income declined 6.5 percent to P366 million. 

Office Warehouse which has 86 stores at present, grew its revenues 14.1 percent to P1.58 billion. 

Likewise, the group’s commercial real estate segment posted 8.2 percent increase in total revenues to P1.84 billion and 7.4 percent increase in net income of P860 million during the nine month period.