Cosco Capital Inc., the retail and investment holding firm behind mega-brands Puregold Price Club, Inc. and S&R Membership Shopping Club, is set to conclude 2024 with a robust performance and a clear strategy toward growth and sustainability for 2025.
While diversifying its portfolio in different industries has proven to be an effective growth driver for the company, finding new ways to cater to customers’ needs and wants remains vital to Cosco’s 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 move has translated into consistent growth in sales and revenues, and increased shareholder confidence,” said John Hao, Head of Investor Relations and Sustainability Officer of Cosco Capital, Inc.
Cosco Capital Inc.’s grocery retailing businesses, Puregold Price Club, Inc. and S&R Membership Shopping Club, marked a 9.1% increase amounting to Php 151.97 billion in consolidated net sales in the first nine months of the year. This impressive growth is fueled by the group’s aggressive expansion strategy in Visayas and Mindanao and the aforementioned focus towards customer satisfaction and best value to customers.
As of September 2024, the group opened 19 new Puregold stores, 3 S&R Membership Shopping Warehouses, and 3 S&R New York Style QSRs. The group now operates 591 stores in the country: 505 Puregold stores, 29 S&R Membership Shopping Warehouses, and 57 S&R New York Style QSRs.
Sales are expected to grow even larger for the remainder of the year, as customer spending tends to increase during the Holiday season. This positive development is expected to also benefit the group’s liquor distribution business through The Keepers Holdings Inc., which has already brought in a consolidated revenue of Php 11.7 billion as of the end of September 2024. Among its biggest sales drivers is Alfonso brandy, which has already surpassed its pre-pandemic sales levels.
In addition to this, the group’s plan to acquire Booze On-line Inc., the exclusive local distributor of premium brands Stella Artois, Corona, Budweiser, Hoegaarden, Leffe, Becks, Paulaner, and other fine spirits and beers, is yet another testament to its strong expansion strategy going into 2025.
Cosco’s Energy and minerals segment is also projected to surge by next year after posting revenues of up to Php 335 million for the nine-month period in 2024, generating a net income of Php 165 million. Part of the reason is its 100% acquisition of Matuno River Development Corporation (MRDC), an 8.66MW run-of-river hydroelectric power plant in Bambang, Nueva Vizcaya as well as the 8MW Catuiran Hydropower Corporation in Oriental Mindoro.
In the same nine-month period, Cosco’s Commercial Real Estate segment also posted positive improvements: a 10% growth in rental revenue amounting to PHP 916 million.
While revenues of Office Warehouse, Inc., which make up Cosco’s Specialty Retailing business segment, declined by 3.5% (that’s PHP 1.6 billion versus last year’s PHP 1.66 billion), its net income increased by 3.3% or Php 66 million, compared to its Php 64 million in the same period in 2023.
