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Grocery business lifts Cosco income

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COSCO CAPITAL, Inc. reported its net income attributable to equity holders of the parent rose 8% in the first quarter, driven by robust sales of its grocery retail and liquor businesses.

In a regulatory filing, the retail holding firm of tycoon Lucio L. Co said attributable net profit went up to P1.25 billion during the January to March period, from P1.15 billion a year ago.

Total revenues grew by 14% to P36.82 billion from P32.32 billion during the same period in 2017.

“The growth in consolidated revenues in 2018 was largely driven by a combination of the group’s sustained organic growth from its grocery retail segment; sustained revenue growth from the LPG business unit driven by the gradual recovery of global petroleum and gas prices…; steady revenue contributions from the real estate segment…; and sustained growth in revenue contributions from the liquor and wine distribution business,” Cosco Capital said.

Its grocery retailing business, Puregold Price Club, Inc. and S&R Membership Shopping Club, accounted for 58% of the company’s profits. Its consolidated net income contribution rose 12% to P1.42 billion, on the back of a 12% growth in revenues to P30.88 billion.

Ten new Puregold stores and one new S&R quick service restaurant were opened during the first quarter.

The commercial real estate segment reported an 11% jump in net income to P283.64 million, on the back of a 10% increase in revenues to P607.96 million. Cosco Capital attributed this to the additional leasable space from four new malls, higher occupancy rates, and increased income from oil storage tanks business in Subic Bay Freeport.

The liquor distribution business generated P1.71 billion in revenues, up 46% in the first quarter, resulting in a 32% rise in net income to P178.99 million.

“The growth in revenue is still principally driven by its brandy portfolio which accounts for more than 60% of sales augmented by the increase in sales of the spirits sector,” Cosco Capital said.

Liquigaz Philippines Corp.’s net income was flat at P101.07 million, despite a 24% increase in revenues to P3.73 billion. Revenues of Office Warehouse, Inc. rose by 13.4% to P499 million.