Grocery, liquor segments buoy Cosco earnings
Retail holding firm Cosco Capital Inc. netted P7.6 billion in first-semester earnings, up by 9.3 percent as it benefited from economic recovery.
Earnings attributable to the majority shareholders of the parent company grew by 10.42 percent to P4.52 billion.
In a regulatory filing on Monday, the Lucio Co-led company said its revenues had jumped by 12.3 percent to P119.5 billion.
Broken down, grocery retailing accounted for 70 percent of the total net income, followed by liquor distribution with 22 percent, commercial real estate with 7 percent. Energy, minerals and specialty retail accounted for 2 percent.
Grocery retailing under Puregold Price Club Inc. and S&R Membership Shopping Club contributed P5.3 billion to the group’s total bottom line, representing a 7.1-percent climb due to its strong revenue growth and higher sales.
The segment’s top line grew by 11.6 percent to P109.9 billion. Same-store sales growth for Puregold ended at 6.4 percent, driven by a bigger basket size, and 4.7 percent for S&R Warehouse clubs due to higher foot traffic.
Liquor distribution through The Keepers Holdings Inc. added P1.6 billion to the overall profit, jumping by 13.7 percent on the back of strong sales from its imported brandy, Alfonso.
The Keepers, whose brands include Johnie Walker, Chivas Regal, Glenfiddich, Suntory, Jinro and Jose Cuervo, recently entered the premium local spirits space in a P40-million deal to buy half of Cervia Global Trading Inc., the producer of Sula flavored liquor.
Meanwhile, Cosco’s commercial real estate segment recorded flat rental revenues at P618 million, reflecting the challenging environment for property developers.
Its earnings, however, climbed by 15 percent to P559 million. The energy and minerals segment posted P309 million in revenues and P117 million in earnings.
Cosco first ventured into this segment last year, during which it acquired two hydroelectric power plants.
The holding firm 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.
