Cosco Capital Earnings Climb 9.2 Percent on Stronger Grocery Sales

Recovery Gathers Pace Across Retail Portfolio

Cosco Capital Inc. delivered first-half net income of P8.3 billion, a 9.2 percent increase from the same period in 2025, according to the company. The retail holding firm controlled by tycoon Lucio Co generated revenues of P130.9 billion during the six months ended June, up 9.5 percent from P119.5 billion a year earlier.

The group's grocery retail arm, which encompasses Puregold Price Club Inc. and S&R Membership Shopping Club, accounted for 70 percent of consolidated net income. Liquor distribution contributed 21 percent, commercial real estate eight percent, and the combined energy, minerals, and specialty retail segments one percent.

Cosco attributed the performance to sustained revenue expansion across all major business lines, a signal that household spending in the Philippines is gaining momentum despite macroeconomic headwinds including elevated inflation and borrowing costs.

Grocery Chains Drive Top-Line Growth

The grocery retail division posted consolidated net income of P5.87 billion in the first half, climbing 10.8 percent year-on-year. Revenues in the segment jumped 10.6 percent to P121.48 billion from P109.88 billion, according to Cosco. The improvement reflected both same-store sales increases and an uptick in gross margins as the chains negotiated better supplier terms and optimized product mix.

Puregold operates more than 400 stores across the Philippines, primarily serving middle- and lower-income shoppers with a value-focused format. S&R, a membership warehouse club modeled on Costco Wholesale, caters to urban households and small businesses seeking bulk purchases. The complementary positioning has allowed Cosco to capture wallet share across income segments as the economy reopens.

Liquor and Real Estate Segments Post Gains

Earnings at The Keepers Holdings Inc., Cosco's liquor distribution subsidiary, rose 7.2 percent to P1.74 billion on higher sales volumes. The unit distributes imported spirits and wines to hotels, restaurants, and retailers, benefiting from the rebound in hospitality and nightlife activity across Metro Manila and key provincial cities.

The commercial real estate segment recorded net income of P650 million, up 16.2 percent. Cosco noted that tenant business operations improved as foot traffic recovered in shopping centers, while rental rates under lease contracts returned to pre-pandemic levels. The group owns and operates retail properties anchored by its grocery chains, creating a vertically integrated model that captures both retail margin and rental income.

Specialty Retail and Energy Show Mixed Results

Office Warehouse Inc., the specialty retail arm, reported net income of P45 million, a 1.3 percent increase, while revenues climbed eight percent to P1.12 billion. The office-supplies chain has faced competition from e-commerce platforms but continues to serve corporate and institutional buyers requiring bulk procurement and credit terms.

The energy and minerals segment, a recent addition to the portfolio, posted net income of P66 million, down 44 percent year-on-year. Revenues in the division fell 49 percent to P155 million. Cosco did not disclose the drivers of the decline, though commodity-price volatility and project timing may have played a role.

Consumer Demand and Margin Outlook

Cosco's results underscore the resilience of Philippine consumer spending even as the central bank maintains policy rates at restrictive levels to anchor inflation expectations. Remittances from overseas Filipino workers, which totaled more than $3 billion per month in the first half of 2026, continue to support household budgets and retail sales.

Gross-margin improvement in the grocery segment suggests that Cosco is extracting better pricing power and supply-chain efficiencies. Analysts will watch whether the company can sustain margin expansion in the second half, particularly if peso depreciation raises the cost of imported goods or if competitors respond with aggressive promotions.

The group's diversified revenue base, spanning essential grocery, discretionary liquor, and real-estate income, positions it to weather economic cycles. However, execution in newer ventures such as energy and minerals will be critical to justify capital allocation and deliver returns to shareholders in a competitive retail landscape.