Cosco Capital, Inc. Net Income Hits P10 Billion in 9M24, Up 10%

Cosco Capital, Inc., the listed retail holding firm of Mr. Lucio L. Co, reported a 10% growth in its consolidated net income amounting to P10 billion for the nine-month of 2024 versus P9.1 billion a year ago. Strong operating performance from all business segments also lifted consolidated revenues by 9.1% to P164 billion for the nine-month 2024 from P150.3 billion in the same period of 2023.

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.

For the nine-month of 2024, the group's grocery retailing businesses, Puregold Price Club, Inc. and S&R Membership Shopping Club, contributed 69% of total net income, followed by the Liquor Distribution with 22%, Commercial Real Estate segment with 7%, Energy & Minerals with 1.5% and Specialty Retail with 0.5%.

The grocery retailing segment’s consolidated net sales for the nine month of 2024 rose by 9.1% to P151.97 billion driven by store expansion and higher same store sales. During the period, the enterprise experienced positive same store sales growth (SSSG) of +3.5% from Puregold Stores d and +4.1% from S&R Warehouse clubs driven by higher traffic and basket size. The company continues to see a buoyant trajectory in topline growth for the remainder of 2024.

The grocery retail group’s net income for the period improved by 4.5% year on year to P6.9 billion from P6.6 billion. Puregold’s topline growth was complimented by the slight improvement in gross margins from the S&R business.

The Liquor Distribution business thru The Keepers Holdings Inc. has recorded consolidated revenue amounting to P11.7 billion, a 15% growth versus previous year on the back of a 18% growth in volume of cases sold for the period. This was driven principally by Alfonso, the leading imported brandy in the market, which has already surpassed its pre-pandemic levels, premiumizing market and on-premise channel rebound. Net income for the liquor segment saw an increase of 20% to P2.17 billion for the nine-month 2024 resulting from the strong sales performance from the imported brandy segment.

The Commercial Real Estate segment posted a 10% growth in rental revenue amounting to P916 million for the nine-month 2024 as business operations of its tenants portfolio has improved due to increased level of economic activities as well as full resumption of rental rates based on contracts. The real estate segment saw its net income grew by 13.3% to P761 million in 2024 versus P672 million in the same period 2023.

The Energy and minerals segment posted revenues of P 335 million for the nine-month 2024 while it generated net income of P165 million for the same period.

For the Specialty Retailing business segment, Office Warehouse, Inc.’s revenues declined by 3.5% at P1.6 billion versus P1.66 billion a year ago. Net income improved by 3.3% to P66 million in 2024 versus P64 million same period last year.