Cosco Capital, Inc. · PSE:COSCO
Cosco Capital — 9M 2020 Earnings Presentation
17 slides from Cosco Capital's earnings presentation, November 2020
Slide 1: Cosco Capital, Inc. 9M 2020 Financial Results
Cosco Capital, Inc. 9M 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 9M 2020
Revenue & Net Income Contribution 9M 2020 Revenues CORE PATMI Specialty Retail 1.0% Real Estate Liquor Grocery 16% Distribution Retailing 64% 3.0% Real Estate 0.6% Liquor Distribution Grocery 19% Retailing 95.4% Specialty Retail 1% PHP 126.97 billion PHP 3.88 billion 4
Slide 5: 9M2020 Consolidated Financial Performance
9M2020 CONSOLIDATED FINANCIAL PERFORMANCE INCREASE (In Thousands) 9M2020 % 9M2019 % (DECREASE) % REVENUES 126,969,855 100.00% 118,382,488 100.00% 8,587,367 7.25% COST OF SALES/SERVICES 105,111,813 82.78% 97,250,598 82.15% 7,861,215 8.08% GROSS PROFIT 21,858,043 17.22% 21,131,890 17.85% 726,152 3.44%
Slide 6: Grocery Retailing: 9M2020 Financial Highlights
Grocery Retailing: 9M2020 Financial Highlights (In PHP millions) Revenues Gross Profit and Margin +10.1% +7.9% 154,492 141,140 121,138 23,929 25,951 109,981 19,844 17.0% 16.8% 18,390 16.7% 16.4% FY2018 FY2019 9M2019 9M2020 FY2018 FY2019 9M2019 9M2020 GP GP Margin EBITDA and Margin Net Profit and Mar
Slide 7: Grocery Retailing: Operational Highlights
Grocery Retailing: Operational Highlights • Puregold opened 16 new stores in 9M 2020; closed 3 PGOLD stores • S&R opened 2 new S&R warehouse; 3 QSR • As of 9M 2020, the Grocery Retailing segment is operating a total of 455 stores • SSSG PGOLD only is at 4.5% while S&R is at 6.4% PUREGOLD S&R S&R QSR
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: 9M2020 Financial Highlights
Liquor Distribution: 9M2020 Financial Highlights (In PHP millions) Revenues Gross Profit and Margin -31.7% -21.5% 10,717 2,458 8,747 7,355 1,874 1,699 5,025 1,334 21.4% 22.9% 23.1% 26.5% FY2018 FY2019 9M2019 9M2020 FY2018 FY2019 9M2019 9M2020 GP GP Margin EBITDA and Margin Net Profit and Margin -4.3
Slide 10: Liquor Distribution: Total Volume Sales
Liquor Distribution: Total Volume Sales • 27% decline in total volume of cases sold in 9M 2020 • Decline driven by the government imposed Liquor Ban during COVID-19 Quarantine CATEGORY 2018 2019 9M 19 Mix % 9M 20 Mix % Inc/Dec Growth Brandy 1,928,918 2,997,940 1,953,239 72% 1,399,686 70% (553,553) -
Slide 11: Real Estate: 9M2020 Financial Highlights
Real Estate: 9M2020 Financial Highlights (In PHP millions) Revenues Gross Profit and Margin -21.3% -26.0% 2,031 2,147 1,486 1,403 1,606 1,130 1,264 69.2% 837 69.1% 70.4% 66.2% FY2018 FY2019 9M2019 9M2020 FY2018 FY2019 9M2019 9M2020 GP GP Margin EBITDA and Margin Net Profit and Margin 1,527 1,576 -23
Slide 12: Group Operational Highlights
Group Operational Highlights REAL ESTATE 53% of tenants portfolio are essential industries allowed to continue business operations during the community quarantines and lockdowns 47% of tenants portfolio – directly affected by the mall closures and community quarantines Rental reliefs extended
Slide 13: Office Warehouse: 9M2020 Financial Highlights
Office Warehouse: 9M2020 Financial Highlights (In PHP millions) Revenues Gross Profit and Margin -33.3% 642 -32.5% 2,451 567 2,089 481 1,876 1,252 325 25.9% 27.1% 26.2% 25.6% FY2018 FY2019 9M2019 9M2020 FY2018 FY2019 9M2019 9M2020 GP GP Margin EBITDA and Margin Net Profit and Margin 251 -57.5% 97 -5
Slide 14: Office Warehouse: Operational Highlights
Office Warehouse: Operational Highlights OFFICE WAREHOUSE, INC. • closed down 1 store in 9M 2020 • SSSG of -34.2% in 9M 2020 vs +13.55% in 9M 2019 due to government lockdown and community quarantine starting March 16, 2020 2016 2017 2018 2019 9M 20 No. Stores 71 82 88 89 88 Net selling area (in sqm)
Slide 15: 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 15
Slide 16: Summary
SUMMARY Macro-economic fundamentals and economic stimulus in place conducive to economic recovery Resilient diversified structure and financial performance Grocery retail segment driving the group’s top-line and bottom-line growths cushioning the declines experienced by the other business segm
Slide 17: Thank you.
Thank you. www.coscocapital.com