Cosco Capital hits P151B in sales in 9 months – report

Cosco Capital Inc., the retail and investment holding firm behind mega-brands Puregold Price Club, Inc. and S&R Membership Shopping Club, reported net sales exceeding P151 billion for the first nine months of 2024. The company’s strong performance was driven by its aggressive expansion strategy and a focus on customer satisfaction.

In a statement released on Thursday, Cosco Capital’s head of investor relations and sustainability officer, John Hao, expressed optimism about the company’s continued growth, highlighting its clear strategy toward expansion and sustainability for 2025. He emphasized that innovation and customer satisfaction remain central to the company’s success, as they aim to reinforce their market dominance and bring their brands closer to customers.

"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," said Hao. "This has translated into consistent growth in sales and revenues, and increased shareholder confidence."

Cosco’s grocery retailing business, which includes Puregold and S&R, saw a 9.1 percent increase in consolidated net sales, reaching P151.97 billion from January to September 2024. This growth was fueled by the company’s expansion efforts, particularly in the Visayas and Mindanao regions, as well as its focus on delivering value to customers.

As of September 2024, Cosco Capital opened 19 new Puregold stores, three S&R Membership Shopping warehouses, and three S&R New York Style quick-service restaurants (QSRs), bringing the total number of stores nationwide to 591, comprising 505 Puregold stores, 29 S&R Membership Shopping warehouses, and 57 S&R New York Style QSRs.

With the holiday season approaching, Cosco expects a further boost in sales, as customer spending typically increases during this period. The company's liquor distribution business, under The Keepers Holdings Inc., also contributed to growth, generating P11.7 billion in consolidated revenue as of September 2024. Alfonso brandy, in particular, has seen strong performance, surpassing pre-pandemic sales levels.

Additionally, Cosco’s planned acquisition of Booze On-line Inc., the exclusive distributor of premium alcohol brands like Stella Artois, Corona, and Budweiser, is poised to further strengthen its portfolio in 2025.

Cosco’s energy and minerals segment also showed promising growth, generating revenues of P335 million and a net income of P165 million for the first nine months of 2024. This growth is attributed to the company’s full acquisition of Matuno River Development Corp., which operates a run-of-river hydroelectric power plant in Bambang, Nueva Vizcaya, and Catuiran Hydropower Corp. in Oriental Mindoro.

In real estate, Cosco’s Commercial Real Estate segment saw a 10 percent increase in rental revenue, totaling P916 million. However, the Specialty Retailing segment, which includes Office Warehouse, Inc., experienced a slight decline in revenue, down 3.5 percent to P1.6 billion, though net income grew by 3.3 percent, reaching P66 million.

Overall, Cosco Capital’s diverse portfolio and strategic expansion efforts have positioned it for continued growth as it heads into 2025.