Cosco Capital earnings flat in 9 months

MANILA, Philippines — Lucio Co-owned Cosco Capital Inc. reported a consolidated core net income of P6.47 billion in the first  nine months of 2020, nearly same as last year’s level.

Cosco’s businesses include grocery retailing (Puregold Price Club Inc. and S&R Membership Shopping Club), which contributed 64 percent of the total and commercial real estate segment with 16 percent contribution and liquor distribution (19 percent).

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

The grocery retail segment grew its consolidated  income and revenues by  10.9 percent and 10.1 percent  to P5.05 billion and P121.14 billion, respectively.

Cosco opened 16 new Puregold stores, two new S&R Warehouse Clubs and four S&R QSR during the nine-month period.

The liquor distribution business reported a 31.7 percent decline in revenues to P5.03 billion on the back of a 27 percent decline in volume of cases sold due to COVID-19 related community quarantine and liquor bans.

Despite the volume drop, net income for the liquor segment increased by four percent to P750 million due to strategic cost control of its distribution, marketing and promotion expenses.

The commercial real estate segment registered a 21.3 percent decrease in revenues to P1.26 billion and 33.5 percent decline in net income to P625 million during the lockdown period.

Office Warehouse also saw net income decline by 51.7 percent to P39 million as revenues fell 33 percent to P1.25 billion.