Cosco Capital, Inc. Reported P3.35 Billion in Net Income for Q22024, Up 21%

​Cosco Capital, Inc., the listed retail holding firm of Mr. Lucio L. Co, reported a 21% growth in its consolidated net income amounting to P3.55 billion in the second quarter of 2024 versus P2.94 billion a year ago. Strong operating performance from all business segments also lifted consolidated revenues by 9.6% to P55.55 billion from P50.7 billion in the same period of 2023.

For the first half of 2024, Cosco Capital reported a 15.5% growth in its consolidated net income amounting to P6.97 billion versus P6 billion a year ago. Consolidated revenues increased by 8.4% to P106.4 billion from P98.2 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.
 
In the first half of 2024, the group's grocery retailing businesses, Puregold Price Club, Inc. and S&R Membership Shopping Club, contributed 71% of total net income, followed by the Liquor Distribution with 20%, 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 first half of 2024 rose by 8% to P98.5 billion driven by store expansion and higher comparative sales. During the period, the enterprise experienced positive same store sales growth (SSSG) of +1.9% from Puregold Stores driven by higher traffic and +2.4% from S&R Warehouse clubs driven from higher ticket size. The company continues to see a buoyant trajectory in topline growth for the second half of 2024.
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The grocery retail group’s net income for the period improved by 12.5% year on year to P4.95 billion from P4.4 billion. Puregold’s topline growth was complimented by the slight improvement in gross margins for both Puregold and S&R business.

The Liquor Distribution business thru The Keepers Holdings Inc. has recorded consolidated revenue amounting to P7.7 billion, a 19% growth versus previous year on the back of a 22% 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 23% to P1.43 billion in the first half of 2024 resulting from the strong sales performance from imported brandy, spirits, wines, and specialty beverages.

The Commercial Real Estate segment posted a 9.4% growth in rental revenue amounting to P613 million in the first half of 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 5% to P486 million in 1H 2024 versus P463 million in the same period 2023.

The Energy and minerals segment posted revenues of P172 million for the first half of 2024 while it generated net income of P98 million for the same period.

For the Specialty Retailing business segment, Office Warehouse, Inc.’s revenues declined by 4.3% at P994 million versus P1.04 billion a year ago. Net income improved by 10.5% to P39 million in 1H 2024 versus P5.3 million same period last year.