Cosco Capital confirms P3.5-B in logistics capex
Cosco Capital [COSCO 5.06 3.3%; 245% avgVol] [link], the Lucio Co’s holdco and the parent company of Puregold [PGOLD 29.65 0.8%; 12% avgVol], confirmed reporting that COSCO would spend P12 billion on capex in 2023, and by extension of that confirmation, confirmed also that approximately P3.5 billion of that amount would go toward “logistics capex of the Puregold Group”.
The only larger line item on the capex shopping list is the P4.1 billion that is set aside to build four S&R warehouses and 10 S&R branches.
MB BOTTOM-LINE
As noted by the article, COSCO’s 2023 capex nearly double its 2022 capex, which was P6.1 billion, so that P3.5 billion of logistics spending is significant and sticks out (to me) like crazy.
The PGOLD group (which owns Puregold grocery stores and S&R) obviously has considerable needs in the temperature-controlled warehousing and shipment space, but as some other local giants have discovered, it’s not always so easy to “roll your own” cold storage.
It takes a long time to build something good, and it takes a lot of know-how to operate a facility efficiently. Is the set-aside for PGOLD to build something and operate it on its own, or is Lucio Co about to go shopping for a cold storage acquisition?
--
Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
- Latest
