Cosco allots P5.8 B for capex

MANILA, Philippines — Cosco Capital Inc., the holding company of retail tycoon Lucio Co, is investing P5.8 billion in capital expenditures this year to expand its different businesses.

Cosco Capital’s businesses are grocery retailing through Puregold and S&R, liquor distribution, specialty retailing through Office Warehouse, and commercial real estate.

Of the P5.8 billion, the holding firm is putting in P5.2 billion for Puregold, P500 million for real estate group and P75 million for the office warehouse, the company said in a presentation to investors.

The capex would be funded by internally generated cash and short term untapped bank credit if necessary.

Cosco Capital reported a consolidated core net income growth of 9.3 percent to P2.06 billion in the first quarter from P1.88 billion a year ago on strong consumer spending.

Including the gain realized from the sale of Liquigaz Philippines Corp., consolidated net income soared by 436 percent to P10 billion during the period.

Without the gain from the sale of Liquigaz, core net attributable income to equity holders grew by 8.9 percent to P1.32 billion from P1.21 billion.

Likewise, net income attributable to equity holders of the parent company surged by 605 percent to P8.53 billion during the period.

Excluding Liquigaz in 2018, all the business units achieved a consolidated growth in revenue of 13.26 percent, while consolidated net income grew by 15.35 percent in the first quarter compared with its 2018 performance.

Likewise, consolidated net attributable income to equity holders grew by 17.39 percent during the same period last year.

Puregold Price Club Inc. and S&R Membership Shopping Club contributed 58 percent of total profits followed by the commercial real estate segment with 23 percent and the liquor distribution with 17 percent.

The group’s specialty retailing segment, Office Warehouse Inc., accounted for two percent of net profit.

Puregold and S&R Membership Shopping Club grew its consolidated revenue by 12.8 percent to P34.8 billion while consolidated net income rose by nearly 12 percent to P1.5 billion.

During the quarter, the group opened eight new Puregold stores and one new S&R Warehouse Clubs.

The liquor distribution business, meanwhile, posted a 24 percent growth in revenues to P2.1 billion on strong sales of Alfonso Light Brandy and Alfonso Brandy brands. Its net income increased by 28.3 percent to P230 million.