Tycoon Lucio Co’s retail holding firm Cosco Capital Inc. posted a one percent growth in its consolidated net income to P12.4 billion in 2023 from P12.3 billion a year ago on the back of record earnings from its liquor distribution business.

In a disclosure to the Philippine Stock Exchange (PSE), Cosco said strong operating performance from all its business segments lifted consolidated revenues by 8.8 percent to P214.5 billion last year from P197.1 billion in 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,” the firm said. 

The Liquor Distribution business thru The Keepers Holdings Inc. has recorded consolidated revenues amounting to P16.3 billion, a 17 percent growth versus previous year on the back of a nine 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 saw a record-breaking performance jumping 30 percent to P2.9 billion in 2023 resulting from the strong sales performance from imported brandy, spirits, wines, and specialty beverages. 

In 2023, the group's grocery retailing businesses, Puregold Price Club Inc. and S&R Membership Shopping Club, contributed 69 percent of total net income, followed by the Liquor Distribution with 24 percent, and Commercial Real Estate segment with seven percent. 

The grocery retailing segment’s consolidated net sales for 2023 rose by eight percent to P199 billion driven by higher comparative sales.

The Puregold enterprise experienced positive same store sales growth (SSSG) of 3.3 percent from Puregold Stores and 0.6 percent from S&R Warehouse clubs driven primarily from higher traffic.  

SSSG trends continued to normalize starting in the second quarter as consumer revenge spending has plateaued. The company continues to see a buoyant trajectory in topline growth for the balance of the year. 

However, the grocery retail group’s net income for the period declined by 7.4 percent year on year to P8.6 billion as topline growth was partly offset by decline in margins primarily due to the aggressive store expansion, slight gross margin compression to remain competitive and growth in market share, as well as the increase in retirement benefit expenses.

The Commercial Real Estate segment posted a seven percent growth in rental revenue amounting to P1.95 billion in 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 grew by 10.4 percent to P933 million in 2023 versus P845 million in the same period 2022.

For the Specialty Retailing business segment, Office Warehouse Inc.’s revenues grew by 20 percent to P2.15 billion as it continued to see a strong recovery from its business operations registering a 14.9 percent same stores sales growth as compared to its 2022 level. 

Net income improved by 14 percent to P78 million in 2023 from P69 million in the same period 2022.