Groceries boost Cosco Capital profits


(Source: Inside Retail Philippines | 7 April 2017)

Cosco Capital, the retail holding firm of businessman Lucio Co, says its net income grew by 7 percent last year to P7.5 billion (US$149.5 million), while revenues rose 10 percent to P129.2 billion.

Its grocery businesses, headlined by Puregold Price Club and S&R Membership Shopping Club, contributed 59 percent of total profits, followed by the commercial real-estate segment with 22 percent and liquor distribution with 16 percent.

Puregold pocketed P5.53 billion last year, up 10.5 percent.

“Same-store sales growth of 6.2 percent for Puregold stores and 4.4 per cent for S&R stores were driven by continued strong consumer demand,” says Puregold president Ferdinand Vincent.

Consolidated net sales climbed 15.9 percent year on year to P112.6 billion, boosted by higher sales in existing stores and the contribution of 26 new Puregold stores and two S&R warehouse outlets. This year the company plans to build 25 Puregold branches and two S&R warehouses.

At the end of the year, Puregold had 329 stores nationwide comprising 277 Puregold stores, 12 S&R membership shopping warehouses, 23 S&R New York Style QSR, nine NE Bodega Supermarkets and eight Budgetlane Supermarkets.

Puregold’s earnings lifted the net income attributable to equity holders of Cosco Capital, which rose 5.42 percent to P4.73 billion.

The group’s specialty-retailing segment, comprising Liquigaz Philippines and Office Warehouse, accounted for 7 percent of net profit.

Liquor-distribution revenues increased by 4 percent to P5.9 billion, on the back of an 18 percent hike in volume of cases sold during the year. Office Warehouse’s revenues grew by 18 percent to P1.54 billion with 71 retail outlets.

Consolidated net margins stood at 4.9 percent, down from 5.1 percent a year ago.


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