Tycoon Lucio Co-led Cosco Capital posted a strong first quarter as booming grocery sales and recovering consumer spending pushed earnings close to the P4.5 billion mark despite weakness in its power and minerals business.
Net income climbed 21.6 percent to P4.47 billion in the January-to-March period, while revenues rose 11.3 percent to P63.1 billion as Puregold and S&R continued drawing higher traffic and bigger basket sizes from shoppers nationwide.
The grocery retail segment remained the clear earnings engine of the group, contributing 72 percent of total profit after revenues jumped 12.1 percent to P58.8 billion.
Puregold and S&R lifted grocery net income by 23.7 percent to P3.26 billion as stronger sales and improving margins boosted profitability.
Liquor and property offset power weakness
Cosco’s liquor business via The Keepers Holdings also delivered another strong quarter, with Alfonso brandy and the recovery of restaurant and bar demand helping push segment net income up 17.6 percent to P811 million.
The commercial real estate business added to the momentum as rental revenues climbed 22.1 percent to P612 million amid stronger tenant activity and the normalization of lease rates.
Despite the broad consumer-led growth, the group’s energy and minerals segment remained a drag, with revenues falling 34 percent to P97 million and net income slipping 13 percent as softer market conditions weighed on operations.
Office Warehouse, Cosco’s specialty retail arm, posted steady gains as revenues rose 4.3 percent to P565 million while net income edged up 2.2 percent to P30.5 million on sustained demand for office and school-related products.
—Edited by Miguel R. Camus
