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Cosco Capital core income up nearly 15%

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COSCO Capital, Inc. posted a 14.8% increase in consolidated core net income last year to P9.32 billion, which the listed retail holding firm attributed to the continuous organic expansion of its business segments and higher consumer spending.

In a disclosure to the stock exchange on Tuesday, the Lucio L. Co-led company reported a 115.5% increase in its net income attributable to equity holders of the parent company to P11.6 billion.

Cosco reported a 13% jump in its core attributable net income to equity holders to P5.87 billion in 2019, while its consolidated net income shot 81.5% to P15.39 billion, which included its one-time gain from the sale of Liquigaz, versus P8.48 billion in 2018.

The company’s grocery retailing businesses, namely: Puregold Price Club, Inc. and S&R Membership Shopping Club, accounted for 30% of total profits, followed by its liquor distribution with 11% and commercial real estate with 10%.

“The group’s specialty retailing segment, Office Warehouse, Inc., accounted for 1% of net profit. Cosco parent only including the one-time gain on sale of Liquigaz contributed 48% of profits,” the disclosure said.

In 2019, the consolidated revenues of Cosco’s grocery retailing segment went up 9.5% to P154.5 billion while its consolidated net income increased 9.2% to P6.77 billion.

Excluding the company’s one-time gain from the sale of its Lawson equity investment in 2018, the core net income of Cosco’s grocery retail segment rose 16% during the period.

A total of 28 new Puregold stores and two new S&R Warehouse clubs were opened by the company in 2019.

Cosco’s liquor distribution business reported a 22.5% increase in its revenues to P10.72 billion due to a 43% increase in volume of cases it sold in 2019.

“The growth is primarily driven by the continued strong sales performance of Alfonso Light Brandy and Alfonso Brandy,” the company said in the disclosure.

Revenues for Cosco’s commercial real estate segment had a 5.7% growth to P2.15 billion while net income rose 12.8% to P1.23 billion.

The company’s special retailing business segment operated by Office Warehouse, Inc. reported a 17.3% increase to its revenues to P2.45 billion with a same-store sales growth of 12.2%. Office Warehouse currently has 89 stores in operation.

On Tuesday, shares in Cosco fell 2.5% or P0.13 to close at P5.06 per share. — Revin Mikhael D. Ochave





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