LISTED Cosco Capital Inc., the retail holding firm of businessman Lucio Co, on Thursday reported a 7 percent growth in consolidated net income last year to P7.5 billion mainly on the strong performances of its retail and liquor distribution businesses.
In a disclosure to the Philippine Stock Exchange, Cosco Capital said net income attributable to equity holders in 2016 grew 5.42 percent from the previous year to P4.73 billion.
Cosco Capital’s grocery retailing businesses Puregold Price Club Inc. and S&R Membership Shopping Club contributed 59 percent of total profits while its commercial real estate segment contributed 22 percent and its liquor distribution business, 16 percent.
The group’s specialty retailing segment, composed of Liquigaz Philippines Corp. and Office Warehouse, Inc., accounted for 7 percent of the net profit.
“Our strength in retailing shows through the continued growth in our grocery, liquor, and office supplies and technology products retail businesses. Despite challenges in the LPG [liquefied petroleum gas]space, we believe that 2017 would be a better year for Liquigaz. Cosco Capital is continuously investing in our subsidiaries to support its growth momentum, in addition to actively seeking for new strategic business opportunities in the retailing space,” Cosco Capital President Leonardo Dayao said.
On a per segment basis, the group’s grocery retail segment grew its consolidated revenues by 15.9 percent to P112.6 billion, while consolidated net income increased by 10.5 percent to P5.53 billion.
Liquor distribution saw revenues rise 4 percent to P5.9 billion on the back of an 18 percent increase in volume of cases sold in 2016. Office Warehouse increased its revenues 18 percent to P1.54 billion and is operating a total of 71 retail outlets.
Meanwhile, Liquigaz revenues declined 24.7 percent to P8.93 billion due to the decline in global LPG prices. Likewise, the commercial real estate segment posted a 4 percent decline in revenues to P2.33 billion and net income remained flat at P1.02 billion in 2016.