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Driving the news
Consolidated net income rose 9.18 percent to P8.31 billion in the six months ended June from P7.61 billion a year earlier. Net income attributable to equity holders of the parent increased 8.53 percent to P4.90 billion from P4.52 billion.
Revenue climbed 9.50 percent to P130.91 billion from P119.54 billion, while gross profit increased 10.23 percent to P26.52 billion. Income from operations advanced 9.10 percent to P11.01 billion, showing that the improvement was supported by Cosco’s core operations.
Why it matters
Grocery retail was the biggest contributor, generating 70 percent of group net income during the first half, Cosco said in its disclosure. Puregold Price Club Inc. and S&R Membership Shopping Club grew grocery revenue 10.6 percent to P121.48 billion from P109.88 billion, while segment net income increased 10.8 percent to P5.87 billion from P5.3 billion.
Same-store sales grew 3.7 percent at Puregold as shoppers spent more per basket, while S&R posted 12.8 percent growth mainly from higher customer traffic. The company also cited improved gross margins as a driver of grocery earnings.
The other businesses
Liquor distribution contributed 21 percent of group net income. The Keepers Holdings Inc. generated P9.2 billion in revenue, up 2 percent, helped by Alfonso brandy, premiumization and the recovery of on-premise consumption. Liquor net income rose 7.2 percent to P1.74 billion from P1.62 billion.
Commercial real estate net income jumped 16.2 percent to P650 million as rental revenue rose 16.1 percent to P1.19 billion. Office Warehouse revenue gained 8 percent to P1.12 billion, while net income edged up 1.3 percent to P45 million.
The weak spot
Cosco’s newly established energy and minerals segment was the clearest drag on an otherwise broad-based first-half improvement, with revenue falling 49 percent to P155 million and net income dropping 44 percent to P66 million. — Princess Daisy C. Ominga| Ed: Corrie S. Narisma
