Cosco Capital, Inc., the listed retail holding firm of tycoon Lucio L. Co, reported a 14.4 percent growth in consolidated net income to P3.1 billion during the first quarter of 2023 from the P2.7 billion earned a year ago.
In a disclosure to the Philippine Stock Exchange, the firm said strong revenues from all business segments also lifted consolidated revenues by 16 percent to P47.5 billion from 40.7 billion in the same period of 2022.
“The Group continued to benefit from the economic recovery amidst the prevailing macroeconomic challenges by way of higher revenue growth across all its business segments which indicates the recovering consumer demand,” Cosco said.
Better bottom-line results were due to a combination of the gross margin enhancements thru stronger supplier support, sustained strategic cost and expense management leading to a slower growth in expenses versus revenues.
In the first quarter of 2023, the group's grocery retailing businesses, Puregold Price Club, Inc. and S&R Membership Shopping Club, contributed 78 percent of total net income, followed by the Liquor Distribution with 13 percent, and Commercial Real Estate segment with 9 percent.
The grocery retailing group’s consolidated net sales for the first quarter of 2023 rose by 15 percent to P44.4 billion driven by higher comparative sales.
Topline growth momentum continued as consumption was robust even as inflationary pressures persisted. In the first quarter, groupwide same stores sales was up 11.3 percent versus the same period last year.
Broken down by banners, the enterprise experienced positive same store sales growth (SSSG) of 8.8 percent from Puregold Stores and 16.8 percent from S&R Warehouse Clubs.
For the topline, Puregold Stores contributed P30 billion while S&R Warehouses contributed P14.4 billion, up 12 percent and 23 percent, respectively, versus the same period last year.
The grocery retail segment also managed a 12 percent growth in net income to P2.4 billion compared to the same period in 2022.
The Liquor Distribution business thru The Keepers Holdings Inc. has recorded a consolidated revenues amounting to Ph2.9 billion, a 33.6 percent growth versus previous year on the back of a 30 percent growth in volume of cases sold for the period.
This was driven principally by the continued robust performance of Alfonso, which has already surpassed its pre pandemic levels, premiumizing market, and on-premise channel rebound.
Sales performance from its other Spirits, Wines as well as Specialty Beverages categories also registered strong rebounds contributing to the overall revenue growth clearly indicating a recovering demand as the country transitions to normalization and zero pandemic restrictions.
Net income for the liquor segment rose by 26.5 percent to P420 million in the first quarter of 2023 resulting from the strong sales performance from all categories – imported brandy, wines, spirits, and specialty beverages.
The Commercial Real Estate segment posted an 8.7 percent growth in rental revenue amounting to P488 million in the first quarter of 2023 as business operations has improved due to easing mobility restrictions and 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 9 percent to P247 million in the first quarter of 2023 versus P227 million in the same period 2022.
For the Specialty Retailing business segment, Office Warehouse, Inc.’s revenues grew by 42.5 percent to P556 million as it continued to see a strong recovery from its business operations as compared to its 2022 level which were still affected by the pandemic restrictions.
Net income improved by 74 percent to P28 million in the first quarter of 2023 from P16 million in the same period 2022.