Cosco Capital Core Net Income Grew 9.3% to PhP2.06 Billion in 1Q 2019
Cosco Capital, Inc. (PSE: COSCO), the retail holding firm of Mr. Lucio L. Co, reported a consolidated core net income growth of 9.3% to PhP2.06 billion from PhP1.88 billion in the first quarter of 2019 driven by the continued economic growth and the higher consumer spending as a result of the tax reform law. Including the gain realized from the sale of Liquigaz Philippines Corporation, consolidated net income grew by 436% to PhP10 billion.
Without the gain from the sale of Liquigaz, core net attributable income to equity holders grew by 8.9% to PhP1.32 billion from PhP1.21 billion. Net Income attributable to equity holders of the parent company grew by 605% to PhP8.53 billion.
Excluding Liquigaz in 2018, all the business units achieved a consolidated growth in revenue of 13.26% while consolidated net income grew by 15.35% in the first quarter of 2019 compared to its 2018 performance. Likewise, consolidated net attributable income to equity holders grew by 17.39% during the same period last year.
The group’s grocery retailing businesses, Puregold Price Club, Inc. and S&R Membership Shopping Club, contributed 58% of total profits, followed by the Commercial Real Estate segment with 23% and the Liquor Distribution with 17%. The group’s Specialty Retailing segment, Office Warehouse, Inc., accounted for 2% of net profit.
The Group’s grocery retail segment, Puregold Price Club, Inc. and S&R Membership Shopping Club, grew its Consolidated Revenues by 12.8% to PhP34.8 billion, while Consolidated net income increased by 11.9% to PhP1.5 billion. The group opened a total of 8 new Puregold stores, 1 new S&R Warehouse Clubs in the first quarter of 2019.
The Liquor Distribution business posted a 24% growth in revenues to PhP2.1 billion, on the back of a 36% increase in volume of cases sold in the first quarter of 2019. The growth is primarily driven by the continued strong sales performance of Alfonso Light Brandy and Alfonso Brandy brands. Net income increased by 28.3% to PhP230 million.
For the Specialty Retailing business segment, Office Warehouse, Inc.’s revenues grew by 24.5% to PhP621 million while net income increased by 212% to PhP29 million on the back of a very strong SSSG performance of 18%. Office Warehouse currently has 88 stores in operations.
The group’s Commercial Real Estate segment posted 5.4% increase in total revenues to PhP641 million and 10.5% increase net income of PhP313 million during the period.
