Cosco Capital Inc., the retail holding firm of tycoon Lucio L. Co, reported a modest 4.8 percent improvement in consolidated net income to P9.1 billion in the first nine months of 2023 from the P8.7 billion earned a year ago. 

In a disclosure to the Philippine Stock Exchange (PSE), the firm said strong operating performance from all its business segments also lifted consolidated revenues by 10.5 percent to P150.3 billion from P136 billion in the first three quarters of 2022. 

“The Group continued to benefit from the economic recovery amidst 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. 

During the nine-month period of 2023, the group's grocery retailing businesses, Puregold Price Club Inc. and S&R Membership Shopping Club, contributed 72 percent of total net income, followed by the Liquor Distribution with 20 percent, and Commercial Real Estate segment with seven percent. 

“Cosco Capital Inc. is looking at its entry in the Renewable Energy business as another opportunity segment to expand and become a profitable business portfolio in the medium and long term,” said Cosco President Leonardo Dayao. 

He added that, “this will align Cosco with the government’s thrust in renewable energy and contribute to the economic development of our country.”

The grocery retailing segment’s consolidated net sales for the first nine months of 2023 rose by nine percent to P139 billion driven by higher comparative sales. 

In the first nine months, the Puregold enterprise experienced positive same store sales growth (SSSG) of 4.8 percent from Puregold Stores and 4.1 percent from S&R Warehouse clubs driven primarily from higher traffic. 

“SSSG trends continued to normalize starting in the second quarter as a contrast to the more flattering base effects felt in the first quarter of this year,” Cosco said. 

It added that the company continues to see a buoyant trajectory in topline growth for the balance of the year. 

The grocery retail group’s net income for the period rose by 2.1 percent year on year to P6.6 billion. The grocery retail’s topline growth was partially offset by compressed margins and higher operating expenses. 

The Liquor Distribution business thru The Keepers Holdings Inc. has recorded a consolidated revenues amounting to P10.2 billion, a 14 percent growth versus previous year on the back of a 6 percent growth in volume of cases sold for the period. 

This was driven principally by Alfonso, the leading imported brandy in the market, which has already surpassed its prepandemic levels, premiumizing market and on-premise channel rebound. 

Net income for the liquor segment rose by 13 percent to P1.8 billion in the first nine months of 2023 resulting from the strong sales performance from imported brandy, spirits, wines, and specialty beverages. 

The Commercial Real Estate segment posted a 7.8 percent growth in rental revenue amounting to P1.4 billion in the first nine months of 2023 as business operations of its tenants portfolio has improved due to increased level of economic activities as well as full resumption of rental rates based on contracts. 

The real estate segment saw its net income grow by 7.7 percent to P672 million in the first nine months of 2023 versus P623 million in the same period 2022.

For the Specialty Retailing business segment, Office Warehouse Inc.’s revenues grew by 10.5 percent at P1.66 billion as it continued to see a strong recovery from its business operations registering a 20.6 percent same stores sales growth as compared to its 2022 level. 

Net income improved by 18 percent to P63.6 million in the first nine months of 2023 from P54 million in the same period 2022.