Cosco Capital (COSCO) Q4 2024 earnings summary

Executive summary

• Consolidated revenues reached P236.96 billion in 2024, up 10.5% year-over-year, driven by strong consumer demand and aggressive store expansion in grocery retail, robust liquor sales, and higher occupancy in real estate.

• Net income grew 24.9% to P15.49 billion, with net income attributable to equity holders rising 26.2% to P9.31 billion, reflecting improved margins and cost efficiencies.

• Major acquisitions included 100% of Matuno River Development Corp. and 60% of Catuiran Hydropower Corp., expanding the energy portfolio.

Financial highlights

• Grocery retail segment net sales rose 10.1% to P219.17 billion, with same-store sales growth of 4.5% for Puregold and 6.4% for S&R.

• Liquor distribution revenue increased 13.6% to P18.53 billion, with net income up 21.3% to P3.54 billion.

• Real estate revenue grew 5.2% to P2.04 billion, with net income up 20.6% to P1.12 billion.

• Specialty retail (Office Warehouse) saw a 3.4% decline in revenue to P2.08 billion and a 16.9% drop in net income to P65.2 million due to inflationary pressures.

• EBITDA reached P25.8 billion, and operating profit margin was 8.4%.

Outlook and guidance

• Management expects continued growth from store expansion, digital initiatives, and renewable energy investments.

• Liquidity remains strong, with internally generated funds and untapped credit facilities sufficient for future commitments.

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