April 08, 2014

Cosco Capital (COSCO, Not Rated) posts P3.3b net income in 2013

In a press statement, the company said its earnings grew 120% YoY on the back of a 27% rise in revenues to P77.2b.It will be recalled that Cosco only started operations in March 2013 as a result of a back-door listing.

Our take: We note that earnings in 9M13 only grew 24%, implying that either extraordinary strong growth or one-off items may have been booked in 4Q13 to spur the 120% full-year growth. Cosco owns 51% of retailer Puregold (PGOLD), which posted a net income of P3.96b last year.

Cosco's wine distribution and real estate businesses contributed P1.42b to consolidated earnings. We anticipate other growth drivers with the company’s planned foray into community malls and pharmacy business operations – WealthSec