Cosco Capital, Inc. · PSE:COSCO
Cosco Capital — Q1 2020 Earnings Presentation
17 slides from Cosco Capital's earnings presentation, July 2020
Slide 1: Cosco Capital, Inc. 1Q 2020 Financial Results
Cosco Capital, Inc. 1Q 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 1Q 2020
Revenue & Net Income Contribution 1Q 2020 Revenues CORE PATMI Specialty Retail 1% Real Estate 21% Liquor Grocery Distribution Retailing 61% 3% Real Grocery Liquor Estate 1% Retailing, Distribution 95% 17% Specialty Retail 1% PHP 43.09 billion *PHP 1.41 billion *Net Income excludes one-time gain on s
Slide 5: Q1 2020 Consolidated Financial Performance
Q12020 CONSOLIDATED FINANCIAL PERFORMANCE INCREASE (In Thousands) Q12020 % Q12019 %0 (DECREASE) %2 REVENUES 43,085,267 100.00% 37,428,428 100.00% 5,656,839 15.11% COST OF SALES/SERVICES 35,344,924 82.03% 30,432,189 81.31% 4,912,735 16.14% GROSS PROFIT 7,740,343 17.97% 6,996,240 18.69% 744,103 10.64%
Slide 6: Grocery Retailing: 1Q 2020 Financial Highlights
Grocery Retailing: 1Q 2020 Financial Highlights (In PHP millions) Revenues Gross Profit and Margin +17.4% 25,951 +13.3% 154,492 23,929 141,140 17.5% 16.9% 17.0% 16.8% 34,889 40,953 6,122 6,935 FY2018 FY2019 Q12019 Q12020 FY2018 FY2019 Q12019 Q12020 GP GP Margin EBITDA and Margin Net Profit and Margi
Slide 7: Grocery Retailing: Operational Highlights
Grocery Retailing: Operational Highlights • Puregold opened 6 new stores in 1Q 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 443 stores • SSSG PGOLD only is at 14.4% while S&R is at 5.1% 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: 1Q 2020 Financial Highlights
Liquor Distribution: 1Q 2020 Financial Highlights (In PHP millions) Revenues Gross Profit and Margin -13.0% 2,458 -8.0% 10,717 8,747 1,874 21.4% 22.9% 2,123 1,847 491 451 23.1% 24.4% FY2018 FY2019 Q12019 Q12020 FY2018 FY2019 Q12019 Q12020 GP GP Margin EBITDA and Margin Net Profit and Margin 1,800 1,
Slide 10: Liquor Distribution: Total Volume Sales
Liquor Distribution: Total Volume Sales • 9% decline in total volume of cases sold in 1Q 2020 • Decline driven by the government imposed Liquor Ban during COVID-19 Quarantine CATEGORY 2018 2019 Mix % 1Q 19 Mix % 1Q 20 Mix % Inc/Dec Growth Brandy 1,928,918 2,997,940 73% 490,627 68% 403,383 62% (87,24
Slide 11: Real Estate: 1Q 2020 Financial Highlights
Real Estate: 1Q 2020 Financial Highlights (In PHP millions) Revenues Gross Profit and Margin 1,486 2,031 2,147 -2.8% 1,403 -1.8% 392 384 542 526 69.2% 69.1% 73.0% 72.3% FY2018 FY2019 Q12019 Q12020 FY2018 FY2019 Q12019 Q12020 GP GP Margin EBITDA and Margin Net Profit and Margin 1,576 -2.2% 1,225 -5.9
Slide 12: Real Estate Group: Operational Highlights
Real Estate Group: Operational Highlights • Total of 55 commercial properties with 97% average occupancy rate • Pure Petroleum operating at 100% capacity in FY2019 and FY2018 (9 storage tanks with 88.5M liters capacity) Q12020 FY2019 Category Q12020 FY2019 GLA/sqm GLA/sqm Land under lease 11 11 160,
Slide 13: Real Estate Group: Operational Highlights
Real Estate Group: Operational Highlights COMMERCIAL REAL ESTATE Rental Yields Q12020 Q12019 FY2019 Computation Rental income over book value Gross Rental Yield 3.3% 3.3% 11.0% of investment property EBIT over book value of Net Rental Yield 2.1% 2.2% 8.0% investment property Appraisal of Properties
Slide 14: Office Warehouse: 1Q 2020 Financial Highlights
Office Warehouse: 1Q 2020 Financial Highlights (In PHP millions) Revenues Gross Profit and Margin 2,451 -13.7% 642 -12.2% 2,089 567 621 157 138 536 27.1% 26.2% 25.7% 25.3% FY2018 FY2019 Q12019 Q12020 FY2018 FY2019 Q12019 Q12020 GP GP Margin EBITDA and Margin Net Profit and Margin -46.5% -34.4% 251 9
Slide 15: Office Warehouse: Operational Highlights
Office Warehouse: Operational Highlights OFFICE WAREHOUSE, INC. • Strong growth driven by store expansion and enhanced product offerings • closed down 1 store • SSSG of -15.3% in 1Q 2020 vs +18.2% in 1Q 2019 due to government lockdown and community quarantine starting March 16, 2020 2016 2017 2018 2
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