(Source: Inside Retail Philippines | 16 November 2016)
Puregold parent Cosco Capital has recorded 7.5 per cent growth in its nine-month net profit attributable to equity holders of P3.24 billion (US$65.7 million) through higher earnings from its retailing, real estate and liquor distribution business.
Its flagship grocery chain Puregold Price Club had a consolidated net income of P3.65 billion for the period, marking 14 per cent year-on-year growth. For the third quarter alone, Puregold’s net profit rose by 15 per cent to P1.38 billion.
Cosco’s nine-month revenues grew by 11.5 per cent year-on-year during the period to P90.84 billion.
Puregold and S&R Membership Shopping Club contributed 57 per cent of total profits, with nearly a quarter coming from the commercial real estate segment and 12 per cent from liquor distribution.
“Our nine-month same-store sales growth of 6.6 per cent for Puregold and 1.4 per cent for S&R stores were driven by strong consumer demand, even after the elections,” says Puregold president Vincent Co.
Puregold’s consolidated net sales grew by 16.9 per cent to P78.74 in the first nine months thanks to strong consumer demand from its Puregold, S&R stores and S&R New York Style Pizza stores, as well as new outlets.
At the end September, Puregold had 317 stores nationwide, including 268 Puregold stores, 11 S&R membership shopping warehouses, 21 S&R New York Style QSRs, nine NE Bodega Supermarkets and eight Budgetlane Supermarkets.
Its grocery retail segment grew consolidated revenues by 16.9 per cent to P78.7 billion, and at the end of September this segment had 317 stores.
Cosco’s specialty retailing segment, comprising Liquigaz Philippines and Office Warehouse, accounted for 10 per cent of net profit. Office Warehouse’s revenues grew by 19 per cent to P1.16 billion from its 64 retail outlets.
Revenues from liquor distribution increased by 9.8 per cent to P3.7 billion during the nine months on the back of a 16 per cent increase in the number of cases sold.
Cosco president Leonardo Dayao says the group is seeking opportunities for expansion and possible acquisitions.