Cosco earnings up 25% on strong Puregold, S&R sales

Cosco Capital 2024 earnings up a hefty 25% to P15.5 billion.

MANILA, Philippines – Stronger consumer demand, particularly at its grocery chains, lifted the earnings of Cosco Capital Inc. last year by 25 percent to P15.5 billion, offsetting declines at its specialty retail segment.

In a stock exchange filing on Monday, the company led by billionaire Lucio Co said revenues likewise jumped by 10.5 percent to P237 billion.

Most of the heavy lifting was done by the grocery retail business under Puregold Price Club Inc. and S&R Membership Shopping Club, as both contributed 68 percent to the group’s bottom line.

READ: Puregold hits record earnings, declares dividends

The segment grew its net income last year by 21.3 percent to P10.4 billion on stronger sales from both brands. Revenues also climbed by 10.1 percent to P219.17 billion, according to Cosco.

Last year, Cosco opened 26 Puregold stores, four S&R Membership Shopping warehouses and eight S&R New York Style quick service restaurants. This expanded Puregold’s overall network to 602 stores nationwide.

Liquor distribution under The Keepers Holdings Inc., which accounted for 23.5 percent of Cosco’s bottom line, benefited from strong demand for its imported brandy, Alfonso. Net income for this segment reached P3.54 billion, representing a 21.3-percent surge on strong sales.

This also resulted in a 13.4-percent increase in revenues to P18.53 billion.

Earnings of the commercial real estate business rose by 20.6 percent to P1.13 billion on the back of higher occupancy rates. Rental revenue rose by 5.2 percent to P2.05 billion as tenant operations improved amid increased economic activity.

At the same time, however, Office Warehouse Inc., Cosco’s specialty retailing unit, saw its earnings slip by 16.8 percent to P65 million due to lower sales. Revenues declined by 3.41 percent to P2.08 billion.

Energy and minerals, meanwhile, generated P177 million in net income and P492 million in revenues.

Cosco first ventured into this segment last year, during which it acquired two hydroelectric power plants.

The holding firm of the Co family completed its takeover of Catuiran Hydropower Corp. in March 2024 for P551.88 million, and Matuno River Development Corp. in September for P1.02 billion. INQ