Lucio Co holding firm nearly triples income in H1

MANILA, Philippines — The listed retail holding firm of Lucio Co grew its consolidated net income by 193 percent to P12.08 billion in the first semester, driven by the sustained expansion of its business segments as a result of the continued economic growth and higher consumer spending in the country.

Cosco Capital Inc. said the group’s grocery retailing businesses, through Puregold Price Club Inc. and S&R Membership Shopping Club, contributed 54 percent to total profits.

Its commercial real estate segment contributed 23 percent, while its liquor distribution and specialty retailing businesses through Office Warehouse Inc., accounted for 17 percent and two percent of net earnings, respectively.

Puregold stores registered stronger-than-expected same store sales growth of 6.2 percent in the first half, while S&R registered an increase of 9.3 percent.

The robust same store sales growth was attributed to higher consumer spending as a result of the easing inflation this year.

Puregold’s consolidated net sales increased by more than 11 percent to P71.14 billion, 78 percent of which is attributed from the Puregold stores network and 22 percent coming from S&R Membership warehouse clubs and S&R New York Style Pizza stores.

As of end June, the Puregold Group has a total of 419 stores nationwide, including 365 Puregold stores, 17 S&R membership shopping warehouse and 37 S&R New York Style QSR.

Puregold targets to add 25 new Puregold stores and four new S&R warehouse as part of our store network expansion this year.

Meanwhile, Cosco’s liquor distribution business posted a 21 percent growth in revenues to P4.5 billion on the back of higher volume of cases sold in the first half.

The commercial real estate segment saw a 4.6 percent increase in revenues to P1.27 billion, while Office Warehouse’s revenues grew by 20.9 percent to P1.22 billion.