Cosco Capital expects to sustain momentum

MANILA, Philippines - Cosco Capital Inc., the investment holding firm of retail tycoon Lucio Co, said it expects to sustain its first half growth momentum through the latter part of the year.

Retail giant Puregold Price Club Inc. will continue driving growth as Cosco Capital draws up expansion plans for its liquor and commercial real estate units, company officials said.

“The trajectory should be continued, or even better...It is doable barring unforeseen events,” said Cosco Capital president Leonardo Dayao.

In the first half this year, Cosco’s net earnings surged 157 percent to P2.36 billion from P920 million a year ago as total revenues jumped 44 percent to P35.07 billion.

For the second semester, Cosco Capital is banking on Puregold but expansion plans have been set in place for two business units.

“The thrust is for Puregold’s contribution to go down in terms of percentage and the other units will contribute more. This will be in the areas of liquor and real estate,” Dayao said.

To date, Puregold accounts for 93 percent of Cosco Capital’s revenues and 59 percent of its net income.

“The consolidation of our holdings in 2012 has allowed us to build our strength and open numerous doors through which we can expand our core businesses,” said Co, who is chairman of Cosco Capital.

Cosco Capital outlined the growth program for its commercial real estate and liquor units.

In June, Premier Wine & Spirits Inc. began importing and distributing mass market brandy Exelente, whose price point is P95 per bottle.

“We’ll be using our distribution setup in the imported brand starting with Puregold and then other markets,” Dayao said.

Cosco Capital claims to be the country’s leading importer of liquor with exclusive distribution rights for some of the world’s top brands like Cuervo, Jim Beam, Fundador, Absolut Vodka, Johnny Walker, Chivas Regal and Alfonso.