Cosco earnings up 13%

MANILA, Philippines — Strong revenue contribution across all business segments lifted the earnings of the listed retail holding firm of Lucio Co in the nine months ending September.

Cosco Capital Inc. said in a disclosure to the local bourse Wednesday that its consolidated core net income in the three quarters grew by 13.1 percent to P6.51 billion from P5.76 billion in the same period last year.

Cosco said the growth was driven by the sustained organic expansion of its business segments on the back of the continued economic growth and the higher consumer spending as a result of the tax reform law.

With the one-time gain from the sale of Liquigaz, the firm’s consolidated net income soared by 137 percent to P14.52 billion from last year’s P6.12 billion.

The group’s grocery retailing businesses, Puregold Price Club Inc. and S&R Membership Shopping Club, contributed 54 percent of total profits, followed by the commercial real estate segment with 22 percent.

The liquor distribution business contributed 17 percent of total earnings, and the specialty retailing segment, Office Warehouse Inc., accounted for the remaining two percent.

The grocery retail segment saw its consolidated revenues increased by 10.3 percent to P109.8 billion, while consolidated net income improved 2.9 percent to P4.55 billion.

The liquor distribution business, on the other hand, posted a 28.8 percent growth in revenues to P7.36 billion on the back of a 42 percent increase in volume of cases sold during the nine-month period.