PHINMA Corporation (PHN) reported an 18.44 percent drop in consolidated net income to P639.07 million in the first half of 2022 from the P783.56 million earned in the same period last year despite the strong growth in consolidated revenue.
In a disclosure to the Philippine Stock Exchange, the firm said this is primarily due to “an 18.20 percent increase in costs amounting to P1.04 billion in the midst of continued abnormal supply conditions.”
The increase in cost was offset by the improvement in performance of PHINMA Properties as well as P95.21 million in gains from PHN’s investment in Song Lam Cement Joint Stock Corporation.
Consolidated net income attributable to equity holders of the parent amounted to ₱406.83 million for the first six months of 2022, lower by 7.99 percent compared to the P439.34 million posted in the same period last year.
The firm said consolidated revenues improved 10.14 percent to P8.63 billion in the first half of 2022, from P7.83 billion i the same period last year.
PHINMA’s portfolio in the six-month period was supported by higher enrollment figures and strong business performance in its construction materials business, as well as improved booking in property units and increase in corporate bookings in its Metro Manila hotels.
“The PHINMA Group’s strong topline growth in the first half of 2022 reflects our aspirations in creating opportunities to make lives better through our businesses in education, construction materials, hospitality, and property development,” said PHINMA Chairman and CEO Ramon R. del Rosario, Jr.
He added that, “Through these investments, we are making meaningful impact in communities where we serve as we play our role in helping the economy recover from the impact of the pandemic.”
PHINMA’s Construction Materials Group (CMG), composed of Union Galvasteel Corporation (UGC), Philcement Corporation (Philcement), and PHINMA Solar Corporation (PHINMA Solar), posted consolidated revenues P7.07 billion for the first half of 2022, up by 13 percent from the same period last year.
Net income of CMG for the period was lower at P443.28 million due to temporarily higher costs amidst global supply chain issues.
PHINMA Education Holdings, Inc. reported consolidated revenue amounting to P1.37 billion, lower by 6.82 percent than the first half of 2021, which included revenues of P576 million from the two months spillover of second semester SY2020-2021 due to late end of classes in 2020.
PHINMA Education’s normalized revenue for this period grew by 52.89 percent due to a 30 percent increase in enrollment from 72,746 students in SY2020-2021 to 95,503 students in SY2021-2022.
Net income for the period declined to P96.9 million due to higher variable costs related to higher enrollment and other one-time charges.
PHN’s subsidiary, Asian Plaza Inc., posted net income of P28.21 million mainly due to a gain on sale of real property.
In its affiliate PHINMA Property Holdings Corporation (PHINMA Properties), PHN equitized net income of P18.24 million during the period compared to an equitized net loss of P20.06 million during the same period last year due to higher booked units as well as improvements in gross margins.
Equitized net loss in Coral Way City Hotel Corporation amounted to P5.35 million, as the company continued to shift its focus to business and leisure markets given the reduced demand for quarantine bookings.
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The article was originally published in Manila Bulletin and written by James A. Loyola.
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