Cosco Capital (COSCO) Q2 2024 earnings summary

Executive summary

• Consolidated revenues grew 8.38% year-over-year to ₱106.41 billion for 1H 2024, driven by strong performance in grocery retail, liquor distribution, and real estate segments.

• Net income for the period was ₱6.97 billion, a 15.47% increase from 1H 2023, with net income attributable to equity holders at ₱4.09 billion, up 15.71%.

• Earnings per share increased 11.38% to ₱0.59637 compared to 1H 2023.

• Growth was supported by store expansions, higher consumer demand, and efficiency measures across segments.

Financial highlights

• Gross profit increased to ₱21.49 billion, with gross margin at 20.2%.

• Operating income rose to ₱9.37 billion, with EBITDA up 12.23% to ₱12.11 billion.

• EBITDA to interest expense ratio improved to 8.12:1 from 7.23:1 year-over-year.

• Basic/diluted EPS for 1H2024 was ₱0.5964, compared to ₱0.5101 in 1H2023.

Outlook and guidance

• Store network expansion and continued growth in core segments are expected to drive further revenue and profit increases.

• Management expects continued growth, leveraging strong liquidity, internally generated funds, and untapped credit facilities.

• No material events or uncertainties are expected to impact future operations or liquidity.