Lucio Co-led Cosco Capital Inc. saw its first-half profit climb 9.2 percent to P8.3 billion, with its core grocery business doing most of the heavy lifting as consumer spending continued to recover despite persistent economic pressures.

The listed retail holding company of businessman Lucio L. Co said Friday that consolidated net income rose from P7.6 billion in the same period last year. 

Consolidated revenues grew at a slightly faster 9.5 percent to P130.9 billion from P119.5 billion.

“The Group continued to benefit from the economic recovery amidst the prevailing macroeconomic challenges by way of sustained and stronger revenue growth across all its major business segments which indicates the recovering consumer demand,” Cosco Capital said.

Puregold Price Club Inc. and S&R Membership Shopping Club accounted for 70 percent of the group’s total net income during the period, dwarfing the contributions of its other businesses.

Liquor distribution contributed 21 percent of net income, followed by commercial real estate at 8 percent. Energy and minerals and specialty retail accounted for the remaining 1 percent.

Cosco Capital’s grocery retail operations generated P121.48 billion in consolidated revenues, up 10.6 percent from P109.58 billion a year earlier.

Puregold posted same-store sales growth of 3.7 percent, driven by bigger basket sizes, while S&R warehouse clubs delivered a much stronger 12.8 percent increase, mainly on higher customer traffic.

The grocery business converted that sales momentum into stronger earnings, with consolidated net income rising 10.9 percent to P5.87 billion from P5.3 billion on topline growth and improved gross margins.

The Keepers Holdings Inc., Cosco Capital’s liquor distribution business, had a more modest topline performance. Consolidated revenue increased 2 percent to P9.2 billion.

The company said the performance was driven principally by Alfonso, the leading imported brandy in the market, which has already surpassed pre-pandemic levels, alongside a premiumizing market and the rebound of the on-premise channel.

Despite the slower revenue increase, the liquor segment’s net income grew 7.2 percent to P1.74 billion from P1.62 billion a year earlier.

Commercial real estate also provided a lift, with rental revenue jumping 16.1 percent to P1.19 billion as tenants benefited from increased economic activity and contractual rental rates fully resumed.

The segment’s net income climbed 16.2 percent to P650 million from P559 million.

Cosco Capital’s newly established energy and minerals business was the outlier, with revenue falling 49 percent to P1.55 million and net income declining 44 percent to P66 million.

Specialty retailer Office Warehouse Inc., meanwhile, grew revenue by 8 percent to P1.12 billion from P1.04 billion. Net income barely moved, rising 1.3 percent to P45 million from P44.5 million a year earlier.