Cosco Capital, Inc., the retail holding firm of businessman Lucio L. Co, reported an 18 percent improvement in consolidated net income to P4.99 billion for the first half of 2021 from the P4.23 billion posted in the same period last year.

In a disclosure to the Philippine Stock Exchange, Cosco said profits grew despite the decline in consolidated revenues brought about by the continuing impact of the Covid 19 pandemic experienced by the business segments of the Group.

The company did not provide figures for consolidated revenues for the first half of 2020 and 2021.

In the first half of 2021, the group's grocery retailing businesses, Puregold Price Club, Inc. and S&R Membership Shopping Club, contributed 63 percent of total core net income.

This was followed by the Liquor Distribution with 23 percent, Commercial Real Estate segment with 13 percent, while Specialty Retailing segment, Office Warehouse, Inc., accounted for 1 percent of net profit.

The grocery retail segment experienced a decline in its consolidated revenues by 7.1 percent to P 76.2 billion mainly driven by a decline in customer traffic in its Puregold supermarkets due to continuing impact of the pandemic.

However, it was able to manage a 17.3 percent growth in net income to P3.99 billion due to its strategic initiatives to enhance front margins as well as cost reduction measures.

Despite the prevailing environment, the grocery retail group continued to implement its organic expansion strategy and opened a total of 15 new Puregold stores in the first half of 2021.

The Liquor Distribution business posted a 34.8 percent increase in revenues to P4.3 billion, on the back of a 39 percent growth in volume of cases sold, driven principally by the continued robust performance of Alfonso, the leading imported brandy in the market, which is now back to its pre pandemic levels.

Net income for the liquor segment jump by 67.6 percent to P709 million which was augmented by management strategic cost control of its distribution, marketing and promotion expenses.

The Commercial Real Estate segment posted flat revenues of P824 million and flat net income of P395 million during the period as it continued to implement its policy of extending rental waivers/discounts and assistance to affected commercial tenants.

For the Specialty Retailing business segment, Office Warehouse, Inc.’s revenues increased by 1.8 percent to P789 million while net income jumped by 104 percent to P30 million due to strategic cost controls.