Cosco Capital Inc., the listed retail holding firm businessman Lucio Co., said Friday its net income in the first three quarters climbed 4.8 percent year-on-year to P9.1 billion on strong performance of core retail and liquor businesses.
Nine-month consolidated revenues went up by 10.5 percent to P150.3 billion from P136 billion, the company said in a disclosure to the stock exchange Friday.
“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.
Cosco’s grocery retailing businesses, Puregold Price Club, Inc. and S&R Membership Shopping Club, contributed 72 percent of total net income, followed by the liquor distribution with 20 percent and commercial real estate segment with 7 percent.
The grocery retailing segment posted consolidated net sales of P139 billion in the first nine months of the year, up 9 percent year-on-year on higher same-store-sales.
Puregold enterprise experienced positive same-store-sales growth of 4.8 percent as consumer spending continued to normalize starting in the second quarter as a contrast to the more flattering base effects felt in the first quarter of this year.
Net income rose 2.1 percent to P6.6 billion as growth in sales was partially offset by compressed margins and higher operating expenses.
“The company continues to see a buoyant trajectory in topline growth for the balance of the year,” Cosco said.
The group’s liquor distribution business through The Keepers Holdings Inc. recorded net income P1.8 billion, higher by 13 percent resulting from the strong sales performance of imported brandy, spirits, wines, and specialty beverages.
Consolidated revenues amounted to P10.2 billion, a 14-percent growth versus previous year on the back of a 6-percent increase in volume of cases sold for the period.
The commercial real estate segment posted a 7.8 percent growth in rental revenue amounting to P1.4 billion as business operations of its tenants improved due to increased level of economic activities as well as full resumption of rental rates based on contracts.
“Cosco Capital Inc. is looking at its entry in the renewable energy business as another opportunity segment to expand and become a profitable business portfolio in the medium and long term. This will align Cosco with the government’s thrust in renewable energy and contribute to the economic development of our country,” Cosco president Leonardo Dayao said.
