Cosco Capital, Inc. · PSE:COSCO
Cosco Capital — H1 2020 Earnings Presentation
17 slides from Cosco Capital's earnings presentation, August 2020
Slide 1: Cosco Capital, Inc. 1H 2020 Financial Results
Cosco Capital, Inc. 1H 2020 Financial Results Investor Presentation 1
Slide 2: Disclaimer
Disclaimer These presentations and/or other documents have been written and presented by COSCO CAPITAL, INC. (COSCO). COSCO is solely responsible for the accuracy and completeness of the contents of such presentations and/or other documents. Third parties, other than COSCO, do not have any responsib
Slide 3: Company Overview
Company Overview Lucio Co Family Public 76% 24% 49% 100% 100% 100% Commercial Real Grocery Retailing Liquor Distribution Specialty Retailing Estate • Ellimac Prime Holdings, Inc., • Fertuna Holdings Corp., • Patagonia Holdings Corp., • Nation Realty, Inc. • NE Pacific Shopping Centers Corporation •
Slide 4: Revenue & Net Income Contribution 1H 2020
Revenue & Net Income Contribution 1H 2020 Revenues CORE PATMI Specialty Retail, 0.6% Grocery Liquor Retailing Real Estate Distribution, 67% 15% 3.0% Real Estate, 0.4% Liquor Distribution Grocery 17% Specialty Retailing, Retail 1% 96.0% PHP 85.7billion *PHP 2.49billion *Net Income excludes one-time g
Slide 5: 1H2020 Consolidated Financial Performance
1H2020 CONSOLIDATED FINANCIAL PERFORMANCE INCREASE (In Thousands) 1H2020 % 1H2019 % (DECREASE) % REVENUES 85,704,525 100.00% 76,609,527 100.00% 9,094,998 11.87% COST OF SALES/SERVICES 71,086,711 82.94% 63,025,398 82.27% 8,061,313 12.79% GROSS PROFIT 14,617,814 17.06% 13,584,129 17.73% 1,033,685 7.61
Slide 6: Grocery Retailing: 1H2020 Financial Highlights
Grocery Retailing: 1H2020 Financial Highlights (In PHP millions) Revenues Gross Profit and Margin 141,140 154,492 +15.1% +13.2% 23,929 25,951 81,964 17.0% 16.8% 71,232 11,816 13,379 16.6% 16.3% FY2018 FY2019 1H2019 1H2020 FY2018 FY2019 1H2019 1H2020 GP GP Margin EBITDA and Margin Net Profit and Marg
Slide 7: Grocery Retailing: Operational Highlights
Grocery Retailing: Operational Highlights • Puregold opened 7 new stores in 1H 2020; closed 2 PGOLD stores • S&R opened 2 new S&R warehouse; 1 QSR • As of 1Q 2020, the Grocery Retailing segment is operating a total of 444 stores • SSSG PGOLD only is at 9.2% while S&R is at 12% PUREGOLD S&R S&R QSR M
Slide 8: Liquor Distribution: Products
Liquor Distribution: Products Brandy Brandy Tequila Alfonso Fundador Jose Cuervo Alfonso Light Fundador Light Whiskey Excelente Bushmills Whiskey Chivas Regal Tequila Jim Beam Patron Glenfiddich Cognac Martel Whiskey Vodka Johnnie Walker Absolut Jack Daniels Liqueurs Jagermeister Various Wines Speci
Slide 9: Liquor Distribution: 1H2020 Financial Highlights
Liquor Distribution: 1H2020 Financial Highlights (In PHP millions) Revenues Gross Profit and Margin 10,717 -29.3% -16.0% 2,458 8,747 1,874 4,514 973 3,190 818 22.9% 25.6% 21.4% 21.6% FY2018 FY2019 1H2019 1H2020 FY2018 FY2019 1H2019 1H2020 GP GP Margin EBITDA and Margin Net Profit and Margin 00 1,712
Slide 10: Liquor Distribution: Total Volume Sales
Liquor Distribution: Total Volume Sales • 23% decline in total volume of cases sold in 1H 2020 • Decline driven by the government imposed Liquor Ban during COVID-19 Quarantine CATEGORY 2018 2019 1H 19 Mix % 1H 20 Mix % Inc/Dec Growth Brandy 1,928,918 2,997,940 1,165,175 73% 842,335 69% (322,840) -28
Slide 11: Real Estate: 1H2020 Financial Highlights
Real Estate: 1H2020 Financial Highlights (In PHP millions) Revenues Gross Profit and Margin 2,031 2,147 -22.1% -28.3% 1,403 1,486 1,062 69.1% 69.2% 827 740 530 69.7% 64.2% FY2018 FY2019 1H2019 1H2020 FY2018 FY2019 1H2019 1H2020 GP GP Margin EBITDA and Margin Net Profit and Margin -25.0% 1,225 -38.1%
Slide 12: Real Estate Group: Operational Highlights
Real Estate Group: Operational Highlights • Total of 55 commercial properties with 96% average occupancy rate • Pure Petroleum operating at 100% capacity in 1H 2020 and 1H 2019 (9 storage tanks with 88.5M liters capacity) 1H2020 FY2019 Category 1H2020 FY2019 GLA/sqm GLA/sqm Land under lease 11 11 16
Slide 13: Real Estate Group: Operational Highlights
Real Estate Group: Operational Highlights COMMERCIAL REAL ESTATE Rental Yields 1H2020 1H2019 FY2019 Computation Rental income over book value Gross Rental Yield 4.8% 5.8% 11.0% of investment property EBIT over book value of Net Rental Yield 2.9% 4.2% 8.0% investment property Appraisal of Properties
Slide 14: Office Warehouse: 1H2020 Financial Highlights
Office Warehouse: 1H2020 Financial Highlights (In PHP millions) Revenues Gross Profit and Margin -36.6% -36.5% 2,451 642 2,089 567 1,223 314 775 199 27.1% 26.2% 25.7% 25.7% FY2018 FY2019 1H2019 1H2020 FY2018 FY2019 1H2019 1H2020 GP GP Margin EBITDA and Margin Net Profit and Margin -70.3% -72.8% 251
Slide 15: Office Warehouse: Operational Highlights
Office Warehouse: Operational Highlights OFFICE WAREHOUSE, INC. • closed down 1 store in 1H 2020 • SSSG of -37.7% in 1H 2020 vs +15.3% in 1H 2019 due to government lockdown and community quarantine starting March 16, 2020 2016 2017 2018 2019 1H 20 No. Stores 71 82 88 89 88 Net selling area (in sqm)
Slide 16: CAPEX Guidance for 2020
CAPEX Guidance for 2020 • CAPEX Budget of Php 3.6 billion in 2020 - Php 3.4 billion for Puregold Group - Php 150 million for Real Estate Group - Php 50 million for Office Warehouse • To be funded by internally generated cash and short term untapped bank credit lines if necessary 16
Slide 17: Thank you.
Thank you. www.coscocapital.com