Lucio Co’s Cosco Capital Inc., the retail and investment firm behind mega brands like Puregold Price Club, Inc. and S&R Membership Shopping Club, is on track to wrap up 2024 with a solid performance, signaling its clear roadmap toward growth and sustainability for the upcoming year.
While the company has expanded its portfolio across various industries, it’s clear that staying ahead of customer demands is key to Cosco’s continued success.
“We’ve always put a premium on innovation and customer satisfaction. We are committed to growing our businesses, reinforcing our dominance in the local market, and bringing our brands closer to our target markets. This approach has been the driver behind our steady sales growth and increased shareholder confidence,” said John Hao, Head of Investor Relations and Sustainability Officer at Cosco Capital, Inc.
Cosco’s grocery retailing businesses, Puregold and S&R, posted a strong 9.1% increase in consolidated net sales, hitting PHP 151.97 billion in the first nine months of 2024. This growth is driven by the company’s aggressive expansion in the Visayas and Mindanao, along with a strong focus on delivering value and meeting customer needs.
By September 2024, the company had opened 19 new Puregold stores, 3 S&R Membership Shopping Warehouses, and 3 S&R New York Style QSRs, bringing its total store count to 591 nationwide, with 505 Puregold outlets, 29 S&R warehouses, and 57 S&R QSRs.
With the holiday season approaching, consumer spending is expected to rise, further fueling sales growth in the final quarter of 2024. This boost is also set to benefit The Keepers Holdings Inc., Cosco’s liquor distribution arm, which has already generated PHP 11.7 billion in revenue as of September. Alfonso Brandy, a key sales driver, has already surpassed its pre-pandemic levels, reflecting the strong demand for Cosco’s premium liquor offerings. The company is also set to acquire Booze On-line Inc., the exclusive local distributor of premium brands like Stella Artois, Corona, Budweiser, Hoegaarden, Leffe, Becks, Paulaner, and other fine spirits and beers, further strengthening its portfolio.
The company’s energy and minerals segment has shown impressive growth, with recent acquisitions like Matuno River Development Corporation (MRDC) and its 8MW stake in Catuiran Hydropower Corporation poised to drive future revenues. As of September 2024, the segment posted Php 335 million in revenues and Php 165 million in net income.
Cosco’s commercial real estate business also continues to perform well, with a 10% increase in rental revenue to Php 916 million. Meanwhile, its specialty retailing segment, including Office Warehouse, Inc., faced a slight decline in revenue by 3.5%, but the segment’s net income rose by 3.3% to Php 66 million, demonstrating its ability to adapt to market shifts.
Looking ahead to 2025, Cosco Capital’s diverse investments in retail, energy, liquor, real estate, and specialty retailing position the company for continued growth. With a clear focus on long-term expansion and customer satisfaction, Cosco is well-equipped to build on its strong performance and further solidify its leadership in the Philippine market.
