Robust consumer spending buoys Cosco income

Recovering consumer demand buoyed the first-half earnings of listed retail holding firm Cosco Capital Inc. by 15.5 percent to reach about P7 billion as its grocery business grew.

In a stock exchange filing on Tuesday, the company led by billionaire Lucio Co said revenues during the period reached P106.4 billion, up by 8.4 percent.

“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.

Cosco currently operates supermarket retail chain Puregold Price Club Inc. and S&R Membership Shopping Club. These contributed a combined 71 percent to the group’s total net income.

The segment’s earnings jumped by 12.5 percent to P4.95 billion as sales climbed by nearly a tenth to P98.5 billion.

Sales of Alfonso brandy pulled up the earnings of liquor distributor The Keepers Holdings Inc. by 23 percent to P1.43 billion.

Its revenues also surged by 19 percent to P7.7 billion, while volume of cases sold during the period grew by 22 percent.

According to Cosco, Alfonso already surpassed the prepandemic-level sales. It did not provide the exact figure but maintained that Alfonso was still the leading imported brandy in the market.

Meanwhile, the commercial real estate segment recorded a five-percent increase in earnings to P486 million due to the “increased level of economic activities.”

Rental revenues during the period reached P613 million, up by 9.4 percent.

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Cosco’s energy and minerals segment generated P98 million in earnings and P172 million in revenues during the period.

Cosco first entered the segment in March, when it acquired 60 percent of Catuiran Hydropower Corp., the operator of an eight-megawatt (MW) hydropower plant in Oriental Mindoro for P551.88 million.

Last month, the company announced plans to acquire all the 9.118 million shares of Matuno River Development Corp. (MRDC), marking its second renewable energy acquisition. Cosco has yet to disclose the investment amount.

MRDC is the developer of the 8.66-MW Matuno River hydroelectric power plant in Nueva Vizcaya.

Meanwhile, Office Warehouse Inc., Cosco’s specialty retailing business, saw net income jump by 10.5 percent to P39 million despite lower revenues.