Cosco Capital, Inc., the listed retail holding firm of businessman Lucio L. Co, reported a 7.5 percent improvement in consolidated core net income to P10 billion last year from the P9.3 billion earned in the same period in 2019.
In a disclosure to the Philippine Stock Exchange, the firm said its grocery retailing businesses, Puregold Price Club, Inc. and S&R Membership Shopping Club, contributed 64 percent of total core net income last year.
This was followed by the Commercial Real Estate segment with 16 percent and the Liquor Distribution with 19 percent. The group’s Specialty Retailing segment, Office Warehouse, Inc., accounted for 1 percent of net profit.
The grocery retail segment grew its consolidated revenues by 9.2 percent to P168.63 billion, while consolidated grocery segment net income increased by 19.1 percent to P8.07 billion.
The grocery retail group opened a total of 30 new Puregold stores, 2 new S&R Warehouse Clubs and 8 S&R QSR in 2020. Puregold has also launched its Puregold Mobile App to cater to the digital savvy customers and enables them to order grocery online and deliver to their homes.
The Liquor Distribution business posted a 23.8 percent decline in revenues to P8.17 billion, on the back of a 17 percent decline in volume of cases sold due to Covid-19 community quarantine and liquor ban.
Net income for the liquor segment, however, decreased only by 2.7 percent to P1.18 billion due to strategic cost control of its distribution, marketing and promotion expenses.
The Commercial Real Estate segment posted 21 percent decline in revenues to P1.7 billion and 42.9 percent decline in net income of P700million during the period due to Covid-19 lockdown and rental waiver and assistance to commercial tenants.
For the Specialty Retailing business segment, Office Warehouse’s revenues decline by 31.8 percent to P1.67 billion while net income declined by 42.5 percent to P56 million due to store closure during the community quarantine restrictions.