(Source: Philippine Daily Inquirer | 18 April 2016)
Retail tycoon Lucio Co-led conglomerate Cosco Capital Inc. grew its net profit last year by 12 percent to a record P4.49 billion, mostly driven by the strong performance of the flagship grocery business under Puregold Price Club.
“With continued economic growth and strong consumer sentiments, we believe that we can achieve another record year of profits in 2016,” Cosco president Leonardo Dayao said.
Cosco’s consolidated revenues last year rose by 18 percent to P116.75 billion.
Puregold, the second-largest grocery retailer in the Philippines, and upscale chain S&R Membership Shopping contributed 83 percent of the total revenues, followed by earnings from Liquigaz, the second-biggest LPG (liquefied petroleum gas) player in the country, and Office Warehouse at 11 percent. The rest came from the liquor distribution and real estate leasing business units.
Puregold’s group-wide net sales increased by 14.7 percent to P97.17 billion last year, attributed to strong consumer demand from its 255 Puregold stores and 10 S&R stores and 16 S&R fast-food stores.
Including minority interest, Cosco’s consolidated net income for 2015 amounted to P6.99 billion, up by 12 percent compared to the previous year.
Net income after taking out minority interest from the retail business unit contributed 57 percent of the profits, followed by real estate leasing at 23 percent, liquor distribution at 15 percent and specialty retail at 10 percent. “All our operating business units have achieved record profits in 2015,” Dayao said.
The net income from the retail business unit increased last year by 11 percent while that from real estate leasing unit rose by 7 percent. The liquor distribution business unit grew by 9 percent.