Cosco Capital Q2 profit rises 21% to P3.55B on recovering demand
LUCIO L. CO-led retail holding company Cosco Capital, Inc. recorded a 21% increase in its consolidated net income for the second quarter to P3.55 billion from P2.94 billion last year, led by growth across all its business segments amid recovering consumer demand.
Consolidated revenue jumped by 9.6% to P55.55 billion from P50.7 billion last year, Cosco Capital said in a regulatory filing on Tuesday.
For the first half, Cosco Capital saw a 15.5% jump in consolidated net income to P6.97 billion from P6 billion last year.
Consolidated revenue surged by 8.4% to P106.4 billion from P98.2 billion a year ago.
“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 Capital said.
Among segments, the grocery business group led by Puregold Price Club, Inc. and S&R Membership Shopping Club contributed 71% of total net income, followed by the liquor distribution business with 20%, the commercial real estate business with 7%, the energy and minerals business with 1.5%, and the specialty retail business with 0.5%.
First-half net income of the grocery retail group rose by 12.5% to P4.95 billion from P4.4 billion. Net sales increased by 8% to P98.5 billion on store expansion and higher comparative sales.
“During the period, the enterprise experienced positive same-store sales growth of 1.9% from Puregold Stores driven by higher traffic and 2.4% from S&R Warehouse clubs driven by higher ticket size. The company continues to see a buoyant trajectory in top line growth for the second half of 2024,” Cosco Capital said.
Cosco Capital’s liquor distribution business led by The Keepers Holdings, Inc. saw a 23% jump in its first-half net income to P1.43 billion due to the better sales performance of imported brandy, spirits, wines, and specialty beverages.
Consolidated revenue surged by 19% to P7.7 billion, carried by the 22% growth in the volume of cases sold.
The commercial real estate segment grew its January-to-June net income by 5% to P486 million from P463 million last year. Rental revenue increased by 9.4% to P613 million, led by the improved business operations of tenants, as well as the full resumption of rental rates based on contracts.
In the specialty retailing segment, Office Warehouse, Inc. increased its net income by 10.5% to P39 million, while revenue declined by 4.3% to P994 million.
The energy and minerals segment generated a P98 million net income, while revenue reached P172 million.
Cosco Capital stocks were unchanged at P4.80 per share on Tuesday. — Revin Mikhael D. Ochave