Cosco hits double-digit earnings growth

Photo from Cosco Capital/Website

Listed supermarket and liquor holding firm Cosco Capital Inc. booked a 10-percent growth in net income in the January to September period to P10 billion on the continued recovery of consumer spending.

Cosco on Tuesday said its revenues likewise rose by 9.1 percent to P164 billion.

”The group continued to benefit from the economic recovery amid the prevailing macroeconomic challenges by way of sustained and stronger revenue growth across all its business segments, which indicates the recovering consumer demand,” Cosco said in a stock exchange filing.

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Higher foot traffic lifted the earnings of the grocery retail unit under Puregold Price Club and S&R Membership Shopping Club by 4.5 percent to P6.9 billion. These units contributed a combined 69 percent to Cosco’s net income.

Net sales reached P151.97 billion, up by 9.1 percent, on store expansion and higher same-store sales.

The Keepers Holdings Inc., Cosco’s liquor distribution business, booked a 15-percent growth in its top line to P11.7 billion, driven by Alfonso brandy, whose sales surpassed prepandemic levels.

Net income for the segment swelled by 20 percent to P2.17 billion.

Meanwhile, the commercial real estate segment saw a 13.3-percent climb in its bottom line to P761 million during the period as economic activities increased.

Rental revenue expanded by 10 percent to P916 million.

The energy and minerals segment booked a P165-million net income and P335-million revenue. This was the first time that Cosco received contributions from this segment, following its acquisition of two hydroelectric power plants this year.

Revenues of Office Warehouse Inc., the specialty retailing business, dipped by 3.5 percent to P1.6 billion, while net income inched up by 3.3 percent to P66 million.

In a separate regulatory filing, The Keepers said its board of directors had approved plans to fully take over Booze On-Line Inc., an online store focused on selling and delivering liquor products across the country.

The pricing and terms of payment have yet to be determined, with The Keepers also considering notifying the Philippine Competition Commission. INQ