Cosco Capital 2024 income climbs 25% to P15.5B

LUCIO L. CO-LED retail holding company Cosco Capital, Inc. posted a 25% increase in consolidated net income for 2024, reaching P15.5 billion from P12.4 billion a year ago, driven by its grocery and liquor businesses.

Consolidated revenue climbed by 10.5% to P237 billion, up from P214.5 billion in 2023, Cosco Capital said in a regulatory filing on Monday.

Grocery retailer Puregold Price Club, Inc. and S&R Membership Shopping Club accounted for 68% of total net income, followed by liquor distribution at 23.5%, commercial real estate at 7%, energy and minerals at 1%, and specialty retail at 0.5%.

“The group continued to benefit from the economic recovery amidst the prevailing macroeconomic challenges through sustained and stronger revenue growth across all its business segments, indicating recovering consumer demand,” Cosco Capital said.

For 2024, the grocery retail group posted a 21.3% increase in consolidated net income to P10.4 billion, with revenue climbing by 10.1% to P219.17 billion.

Puregold stores posted a 4.5% same-store sales growth (SSSG), while S&R Warehouse clubs recorded a 6.4% SSSG on higher traffic and basket size.

The liquor distribution segment, led by The Keepers Holdings, Inc., recorded a 21.3% increase in net income to P3.54 billion. Revenue rose by 13.6% to P18.5 billion, driven by a 14% volume growth in cases sold during the year, led by the Alfonso imported brandy.

The Keepers distributes various liquor brands such as Johnnie Walker, Chivas Regal, Glenfiddich, Suntory, Jinro, Jose Cuervo, Jim Beam, and Penfolds.

The commercial real estate segment saw a 20.6% net profit growth to P1.13 billion. Rental revenue increased by 5.2% to P2.05 billion, driven by improved business operations of its tenants’ portfolio, boosted by increased economic activity and the full resumption of rental rates based on contracts.

The energy and minerals segment generated P177 million in net income and P492 million in revenue for the year.

Meanwhile, the specialty retailing business, led by Office Warehouse, Inc., recorded a 16.8% drop in net income to P65 million, as revenue fell by 3.4% to P2.08 billion.

On Monday, Cosco Capital shares rose by 5.65%, or 30 centavos, to P5.61 each, while The Keepers stocks gained by 2.41%, or six centavos, to P2.55 per share. — Revin Mikhael D. Ochave