Cosco March quarter income jumped 21.6%

Cosco Capital Inc. reported a 21.6-percent growth in first-quarter earnings as stronger consumer demand boosted the performance of its grocery retail, liquor distribution and commercial real estate businesses.

In a disclosure on Friday, the Lucio Co-led retail holding firm said consolidated net income reached P4.47 billion in the January-to-March quarter from P3.68 billion a year ago.

Consolidated revenues likewise rose 11.3 percent to P63.1 billion from P56.7 billion previously.

The company said it continued to benefit from the Philippine economy’s recovery despite prevailing macroeconomic challenges. Cosco saw sustained revenue growth across its major business segments.

Cosco said its grocery retail business, led by Puregold Price Club Inc. and S&R Membership Shopping Club, remained the group’s biggest earnings contributor.

This accounted for 72 percent of total net income. The segment saw revenues increase 12.1 percent to P58.78 billion.

Consolidated net income jumped 23.7 percent to P3.26 billion on the back of strong top-line growth and improving gross margins.

Puregold stores posted positive same-store sales growth of 5.4 percent driven by a higher basket size.

S&R warehouse clubs recorded a 12-percent increase due to stronger customer traffic.

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Liquor distribution unit The Keepers Holdings Inc., meanwhile, contributed 18 percent of the group’s total net income.

The Keepers posted consolidated revenues of P4.3 billion in the first quarter, up 6.1 percent from a year earlier. This was attributed to a 4-percent growth in volume sales.

Net income rose 17.6 percent to P811 million from P690 million previously.

The firm attributed the growth mainly to stronger sales of Alfonso brandy. The Keepers also cited the continuing “premiumization” trend and rebound of the on-premise channel.