MANILA, Philippines — Cosco Capital Inc., the investment holding firm of retail tycoon Lucio Co, reported strong growth last year on the back of robust sales.
Cosco said its net income grew by 16.8 percent in 2022 to P12.28 billion versus P10.5 billion a year ago, as revenues from all business segments lifted consolidated revenues by 13 percent to P197.1 billion from P174.4 billion in 2021.
“The company continued to benefit from the economic recovery amid the prevailing macroeconomic challenges by way of higher revenue growth across all its business segments, which indicates the recovering consumer demand. 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,” it said in a regulatory filing.
The grocery retailing businesses, the flagship Puregold Price Club Inc. and S&R Membership Shopping Club, contributed 63 percent of total core net income, followed by liquor distribution with 25 percent. Commercial real estate segment contributed 11 percent, and specialty retail at one percent.
The grocery retail segment grew its net income to P9.3 billion, up by 13.5 percent, while liquor unit The Keepers recorded a consolidated revenue of P13.96 billion, a 26.5 percent growth compared to the same period last year.
This brought net income for the liquor segment to P2.23 billion, up 41 percent, as a result of strong sales performance from all categories – imported wine, spirits, and specialty beverages.
During the year and pursuant to its strategic plans, Keepers has also completed its acquisition of 50 percent equity in Bodegas Williams & Humbert SA, the producers of Alfonso, which is the company’s top brand.
The commercial real estate segment posted a seven percent growth in rental revenue amounting to P1.81 billion in 2022, as business operations improved due to easing mobility restrictions and increased level of economic activities.
For the specialty retailing business segment, Office Warehouse Inc., revenues grew by 15 percent to P1.79 billion as it continued to see a recovery from its business operations. Likewise, net income improved by 38 percent to P69 million in 2022.
On the other hand, the real estate segment saw its net income decrease by 7.6 percent to P845 million due to higher power and utility costs.
Strong remittances from overseas Filipino workers boosted demand, offsetting the negative impact of high inflation, Cosco Capital reported.
Moving forward, Cosco Capital sees continuous growth in its top line in the coming years “due to the country’s healthy underlying fundamentals, underserved demand and relatively raw retail landscape.”