MANILA, Philippines–Holding firm Cosco Capital Inc. of retailer Lucio Co grew its net profit last year by 20 percent to a record-high P4.01 billion, mostly driven by the retailing businesses under the Puregold and S&R brands.
“I believe that 2015 will be another record year of profits for Cosco as all our operating business units have shown double-digit profit growth in 2014 and we are excited for more expansions amd acquisitions across all businesses to cater to the growing demands of consumers,” said Cosco president Leonardo Dayao.
Consolidated revenues amounted to P98.75 billion in 2014, up by 27 percent.
The retail business segment that includes flagship Puregold Price Club and S&R Membership Shopping contributed 85.8 percent of the total revenues, followed by specialty retail, covering Liquigaz, the second largest LPG (liquefied petroleum gas) player in the Philippines and Office Warehouse, which together contributed 8.8 percent.
Liquor distribution contributed 3.8 percent and real estate leasing had a 1.6-percent share.
Puregold’s net sales increased by 16 percent to P84.7 billion in 2014 and this was attributed to the strong consumer demand from its 233 Puregold stores and nine S&R stores.
In 2014, the group had 248 stores with a net selling area of about 405,000 square meters.
Cosco’s consolidated net income in 2014 amounted to P6.24 billion, up by 16 percent from the previous year.
The retail business unit contributed 73 percent of the profits, followed by real estate leasing (15 percent), liquor distribution (10 percent) and specialty retail (2 percent).
Net income from the retail business increased by 14 percent while earnings from real estate leasing rose by 81 percent. Income from liquor distribution grew by 12 percent while earnings from specialty retail went up by 54 percent.
Cosco ended the year with more than P15 billion in cash and a debt to equity ratio of 52 percent.