Two firms controlled by tycoon Lucio Co, Puregold Price Club Inc. and The Keepers Holdings Inc., have declared cash dividends with a combined value of P3.91 billion.

In a disclosure to the Philippine Stock Exchange (PSE), Puregold said its Board of Directors has announced a 30 percent payout ratio of core net income of the previous year being returned to shareholders in the form of cash dividends totaling P2.79 billion. 

This amounts to P0.97 per share payable on Jan. 18, 2024, to shareholders of record at the close of business on Dec. 27, 2023. 

This dividend represents a 13 percent year on year increase in annual cash dividends declared versus the previous year. While the current dividend yield amounts to around 3.7 percent.

Puregold said it has paid dividends to its shareholders without interruption since being publicly listed in 2011.

Meanwhile, the Board of Directors of Keepers announced a 50 percent payout ratio of core net income of the previous year being returned to shareholders in the form of cash dividends totaling P1.12 billion. 

This amounts to P0.077 per share payable on Jan. 18, 2024, to shareholders of record at the close of business on Dec. 27, 2023. 

This dividend represents a 41percent year on year increase in annual cash dividends declared versus the previous year. While the current dividend yield amounts to around 5.3 percent.

Keepers has paid dividends to its shareholders without interruption since its follow-on offer in 2021.

Puregold and Keepers’ parent company Cosco Capital reported that, in the first nine months of 2023, 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.

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 Keepers has recorded a consolidated revenues amounting to P10.2 billion, a 14 percent growth versus previous year on the back of a six 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 pre pandemic 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.