LUCIO L. Co-led liquor retailer The Keepers Holdings, Inc. (Keepers) said it is working to fully acquire beer importer Booze Online, Inc. to improve its brand portfolio.
The negotiation for the planned acquisition was approved during a board meeting on Nov. 11, Keepers said in a regulatory filing on Tuesday.
Keepers will acquire two million shares of Booze Online at a price yet to be announced. The beer importer is intended to be acquired at a price below 10% of Keepers’ total book value as of Sept. 30.
“The intended transaction offers Keepers the opportunity to add to its portfolio premium beer brands,” the company said.
“The corporation undertakes to submit the necessary notification to the Philippine Competition Commission, if applicable,” it added.
Booze Online is an importer and distributor of wines, spirits and premium beers. It claims to be the largest imported beer distributor in the Philippines.
Some of the brands distributed by Booze Online include Hoegaarden, Stella Artois, Becks, Leffe, Paulaner, Chimay, and Delirium Tremenes.
It also carries brands such as Johnny Walker, Hennesy, Bacardi, Chivas Regal, Jack Daniels, Baileys, Absolut, Ballentines, Remy Martin, Jose Cuervo, Captain Morgan, Martell, The Glenlivet, and Grey Goose.
Keepers will acquire Booze Online from Adarro Holdings Corp. and Rajesh Sadhwani. Its current corporate secretary, Baby Gerlie I. Sacro, is one of the directors of Adarro Holdings.
Keepers Investor Relations Officer John M. Hao said in a Viber message that the company recorded a 14.5% increase in its third quarter net income to P743 million as revenue surged by 7.4% to P3.99 billion. The company has yet to disclose its quarterly report.
For the first nine months, Keepers said in a separate disclosure that its net income grew by 20.1% to P2.17 billion from P1.81 billion last year driven by better sales volume from the imported brandy segment.
January to September revenue climbed by 14.6% to P11.71 billion led by the 18% increase in volume of cases sold during 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,” Keepers said.
Meanwhile, Mr. Hao said the Keepers’ parent company, Cosco Capital, Inc., generated P3.08 billion in third quarter net income, flat from last year’s levels. Revenue rose by 10.7% to P57.6 billion. The company has yet to release its quarterly report.
Cosco Capital grew its nine-month net income by 10% to P10.04 billion from P9.13 billion last year, the company said in a separate disclosure.
The grocery retailing business led by Puregold Price Club, Inc. and S&R Membership Shopping Club, contributed 69% of total net income, followed by Keepers with 22%, commercial real estate segment with 7%, energy and minerals with 1.5%, and specialty retail with 0.5%.
Nine month revenue rose by 9.2% to P164.06 billion from P150.27 billion a year ago.
“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,” Cosco Capital said.
The grocery segment saw a 4.5% increase in net income to P6.9 billion. Net sales rose by 9.1% to P151.97 billion led by store expansion and higher same store sales.
Cosco’s commercial real estate business improved its net income by 13.3% to P761 million. Rental revenue climbed by 10% to P916 million due to improved business operations of tenants amid increased level of economic activities and full resumption of rental rates based on contracts.
The energy and mineral segment generated P165 million in net income as revenue reached P335 million.
The specialty retailing business segment comprised of Office Warehouse, Inc. saw a 3.3% increase in net income to P66 million as revenue declined by 3.5% to P1.6 billion.
On Tuesday, Keepers shares rose by 4.83% or 10 centavos to P2.17 per share; Cosco Capital stocks fell by 1.29% or seven centavos to P5.37 each, and Puregold shares declined by 0.32% or 10 centavos to P31.6 apiece. — Revin Mikhael D. Ochave
