Retail tycoon Lucio Co-led Cosco Capital grew net profit attributable to equity holders of parent firm last year by 12.7 percent to P5.5 billion, riding on the growing economy and higher consumer spending resulting from the tax reform law.
Including earnings attributable to minority interest, Cosco’s net profit in 2018 rose by 12.4 percent to P8.8 billion, the company disclosed to the Philippine Stock Exchange on Wednesday.
The group’s grocery retailing businesses Puregold Price Club Inc. and S&R Membership Shopping Club contributed 60 percent of total profit, followed by the commercial real estate segment with a contribution of 19 percent and the liquor distribution with 13 percent.
The group’s specialty retailing segment—composed of Liquigaz Philippines Corp. and Office Warehouse Inc.—accounted for 8 percent of net profit.
The grocery retail segment, flagship Puregold Price Club Inc. and S&R Membership Shopping Club, grew consolidated revenues by 13.2 percent to P140.9 billion, while consolidated net income increased by 11.6 percent to P6.52 billion.
The group opened a total of 30 new Puregold stores, two new S&R warehouse clubs and seven new S&R quick service restaurants in 2018.
The liquor distribution business posted a 31.3-percent growth in revenues to P8.7 billion, on the back of a 32-percent increase in volume of cases sold in 2018.
The growth is primarily driven by the increase in sales of Alfonso Light Brandy and Alfonso Brandy.
For the specialty retailing business segment, Liquigaz Philippines Corp. generated a 30-percent increase in revenues to P17 billion, mainly driven by increase in sales volume and the recovery in global LPG prices during the period. Its net income increased by 33.5 percent to P626 million.
Office Warehouse’s revenues grew by 15.5 percent to P2 billion. Office Warehouse currently has 88 stores in operations.