Cosco Q1 profit improves to P2.7 B

Published May 16, 2022, 2:45 PM

by James A. Loyola

Retail Holding firm Cosco Capital, Inc. reported a 10.9 percent improvement in growth consolidated net income to P2.7 billion for the first quarter of 2022 from P2.44 billion in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said its consolidated revenues amounted to P40.68 billion in the first quarter of 2022, up 2.8 percent from P39.57 billion in the same period of 2021.

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Cosco said its bottom line continued to benefit from a combination of gross margin enhancements thru stronger suppliers support, sustained strategic cost and expense management as well as the income tax savings from the implementation of the CREATE Law.

For the first quarter of 2022, the group’s grocery retailing businesses, Puregold Price Club, Inc. and S&R Membership Shopping Club, contributed 68 percentof total core net income, followed by the Liquor Distribution with 17 percent, Commercial Real Estate segment with 14 percent, while Office Warehouse, Inc. accounted for 1 percent.

Listed Puregold reported consolidated net income of P2.15 billion in the first quarter of 2022 which is 6.5 percent better compared to the same period in 2021. This was fueled by the company’s continuous organic expansion of grocery retail outlets, diligent cost management and sustained strong consumer demand.

Puregold consolidated net sales increased by 2.1 percent year-on-year to P38.51 billion. A gradual recovery in sales was experienced following the lifting of heighted mobility restrictions after the surge in Omicron cases felt in January 2022.

The group opened 5 new Puregold stores in the first quarter of 2022. As of end March 2022, Puregold group has a total of 504 stores nationwide including 22 S&R membership shopping warehouse and 47 S&R New York Style QSR.

Listed imported liquor distributor The Keepers Holdings Inc. reported a 34.3 percent growth in its consolidated net income to P333.5 million for the first quarter of 2022 from P247.6 million in the same period in 2021.

This is due to the strong sales performance augmented by management’s strategic cost control of its distribution, marketing and promotion expenses.

Keepers recorded consolidated revenue amounting to P2.17 billion, a 23.3 percent growth versus previous year, on the back of a 17 percent growth in volume of cases sold totaling more than 831 thousand cases sold for the first quarter of 2022.

The Commercial Real Estate segment posted a 5 [ercent growth in rental revenue amounting to P449 million in the first quarter of 2022 with the gradual opening up of the economy.

It also also managed to improve net income by 13.3 percent to P227 million for the period in 2022 versus P200 million in the same period in 2021 due to a combination of strategic cost efficiencies in the management of its cost of services as well as operating expenses.

Office Warehouse’s revenues decreased by 8 percent to P390 million as it continued to deal with the effects of hard lockdowns during the first quarter of 2022. Net income declined to P16 million in first quarter 2022 from P18 million in same period 2021.

 
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