Cosco Q1 profit up as major business segments deliver

MANILA, Philippines — Strong operating performance from major business segments, driven by recovering consumer demand, boosted the earnings of Lucio Co’s listed retail holding firm, Cosco Capital Inc., in the first quarter.

Cosco reported a 21.6-percent jump in net income to P4.47 billion in the first quarter from last year’s P3.68 billion, as revenues for the period accelerated by 11.3 percent to P63.1 billion.

Puregold Price Club lnc. and S&R Membership Shopping Club, the group’s grocery retailing businesses, contributed 72 percent to total net income during the quarter, followed by the liquor distribution with 18 percent, the commercial real estate segment with eight percent, and energy and minerals and specialty retail with two percent.

“The group continued to benefit from the economic recovery amidst the prevailing macroeconomic challenges by way of sustained and stronger revenue growth across all its business segments, which indicates the recovering consumer demand,” Cosco said.

Net income of the grocery retail group surged by 23.7 percent year-on-year to P3.26 billion, driven by strong topline growth and improved gross margins.

The liquor distribution business through The Keepers Holdings lnc. saw a 17.6 percent increase in net income to P811 million as revenue climbed to P4.3 billion on the back of higher volume of cases sold.

The real estate segment likewise delivered a 28.1-percent growth in profit to P350 million, with rental revenue rising by 22.1 percent as business operations of its tenant portfolio improved due to increased economic activity and the full resumption of rental rates under contracts.