COSCO CAPITAL, Inc. has allocated P7 billion for capital expenditures (capex) this year, with plans to expand its grocery retail store network and invest in its real estate and specialty retail businesses.
“Signifying this commitment to grow, Cosco’s capex budget for 2025 amounts to P7 billion,” Cosco Capital Comptroller Gerardo S. Teofilo, Jr. said during the company’s virtual annual stockholders’ meeting on Tuesday.
Mr. Teofilo said the bulk of the capex will be directed toward expanding the store network of the group’s grocery retail business, which includes Puregold Price Club, Inc. and S&R Membership Shopping Club.
As of end-March, Puregold operates 757 stores nationwide, consisting of 662 Puregold stores, 30 S&R Membership Shopping warehouses, and 65 S&R New York Style quick-service restaurants.
He added that part of the capex will be allocated to Cosco Capital’s real estate business and its specialty retail segment led by Office Warehouse, Inc.
Cosco Capital expects to sustain strong growth and profitability despite ongoing economic and business challenges, Mr. Teofilo said.
“As we look ahead to 2025 and beyond, we are confident in our position and capabilities to capitalize on the many opportunities that abound across industries,” he said.
“We remain committed to maximizing our strengths and achieving our full potential as we continue to set the pace for the industry and contribute to national economic development,” he added.
For the first quarter, Cosco Capital posted a 7.6% increase in consolidated net income to P3.68 billion, as consolidated revenue rose 11.5% to P56.7 billion, driven by recovering consumer demand.
The grocery retail businesses led by Puregold and S&R Membership Shopping contributed 72% of total net income, followed by liquor distribution at 19%, commercial real estate at 7%, and energy and minerals and specialty retail at 2%.
“The group continued to benefit from the economic recovery amidst prevailing macroeconomic challenges through sustained and stronger revenue growth across all its business segments, indicating recovering consumer demand,” Cosco Capital said.
Cosco Capital shares rose by 0.65%, or four centavos, to P6.24 per share on Tuesday. — Revin Mikhael D. Ochave
