Cosco posts P2.06-B core profit

Published May 12, 2019, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Cosco Capital, Inc., the retail holding firm of businessman Lucio L. Co, reported a 9.3 percent hike in consolidated core net income to P2.06 billion in the first quarter of 2019 from P1.88 billion in the same period last year.

In a statement, the firm said higher earnings were driven by the continued economic growth and the higher consumer spending as a result of the tax reform law.

Including the gain realized from the sale of Liquigaz Philippines Corporation, consolidated net income grew by 436 percent to P10 billion.

Attributable net income surged by 605 percent to P8.53 billion. Without the gain from the sale of Liquigaz, core net attributable income to equity holders grew by 8.9 percent to P1.32 billion from P1.21 billion.

Excluding Liquigaz in 2018, all the business units achieved a consolidated growth in revenue of 13.26 percent while consolidated net income grew by 15.35 percent in the first quarter of 2019 compared to its 2018 performance.

Likewise, consolidated net attributable income to equity holders grew by 17.39 percent from the same period last year.

The group’s grocery retailing businesses, Puregold Price Club, Inc. and S&R Membership Shopping Club, contributed 58 percent of total profits, followed by the Commercial Real Estate segment with 23 percent and the Liquor Distribution with 17 percent.

The group’s Specialty Retailing segment, Office Warehouse, Inc., accounted for 2 percent of net profit.

The grocery retail segment grew its consolidated revenues by 12.8 percent to P34.8 billion, while consolidated net income increased by 11.9 percent to P1.5 billion.

The Liquor Distribution business posted a 24 percent growth in revenues to P2.1 billion, on the back of a 36 percent increase in volume of cases sold in the first quarter of 2019. Net income increased by 28.3 percent to P230 million.

Office Warehouse’s revenues grew by 24.5 percent to P621 million while net income increased by 212 percent to P29 million on the back of a very strong SSSG performance of 18 percent.

The group’s Commercial Real Estate segment posted a 5.4 percent increase in total revenues to P641 million and a 10.5 percent increase net income of P313 million during the period.