Cosco nets P12.4 billion in 2023

MANILA, Philippines — Lucio Co’s listed retail holding firm Cosco Capital Inc. registered a  slight improvement in profitability in 2023, driven by strong operating performance from all business segments.

Cosco reported a consolidated net income of P12.4 billion in 2023, up one percent from P12.3 billion the previous year.

Its grocery retailing businesses, Puregold Price Club Inc. and S&R Membership Shopping Club, contributed the majority of the year’s total net income at 69 percent, followed by liquor distribution with 24 percent and commercial real estate segment with seven percent.

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

Cosco’s grocery retailing segment posted an eight percent rise in consolidated net sales to P199 billion in 2023, driven by higher comparative sales. Same store sales growth trends continued to normalize starting in the second quarter as consumer revenge spending has plateaued. 

For the rest of the year, the company said it continues to see a buoyant trajectory in top line growth.

The liquor distribution business through The Keepers Holdings Inc. likewise registered a 17-percent jump in consolidated revenue amounting to P16.3 billion in 2023 on the back of higher volume of cases sold. 

Cosco said the growth was driven primarily by imported brandy Alfonso, which has already surpassed its pre-pandemic levels, premiumizing market and on-premise channel rebound.

The commercial real estate segment also saw a seven-percent increase in rental revenue last year to P1.95 billion.

The growth was attributed to improved business operations of its tenants portfolio due to increased level of economic activities as well as full resumption of rental rates based on contracts.

For the specialty retailing business segment, Office Warehouse Inc.’s revenues hit P2.15 billion, up 20 percent year-on-year, on the back of sustained strong recovery from its business operations.