COSCO is spinning-off its liquor distribution business via a back-door listing through Da Vinci Capital Holdings (DAVIN). The liquor distribution business of COSCO is responsible for distributing Johnnie Walker, Chivas, Jim Beam, Glenlivet, and Bacardi among others in the country. COSCO is swapping its shares of its liquor distribution businesses with shares of DAVIN.
Revenues generated by COSCO’s Liquor Distribution Business decreased to P5.02 Billion during the nine-month period of 2020 or 31.68% decline from last year’s P7.35 Billion amidst a decline of 27% in volume (no. of cases) of sales.
The decline in revenue which was principally experienced in the first half of 2020 directly resulted from the government-imposed liquor bans as part of the government’s enhanced community quarantine and related lockdown restrictions in response to the Covid-19 pandemic.
Sales performance during the period (9M2020) was still principally driven by its brandy portfolio which continued to account for more than 70% of sales mix augmented by the robust performance of the other spirits as well as wines and specialty beverages categories.
Income from operations of COSCO’s liquor distribution business decreased to P992.23 Million in the nine-month period of 2020 or 4.39% decline from last year’s P1.04 Billion.
The strength of the liquor business in the country may remain weak as cities and municipalities once again impose liquor bans in the light of the “recent alarming increase” in COVID-19 cases.
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