RLC records 31% profit growth to P8.8 B

The Gokongwei Group’s property development arm Robinsons Land Corporation (RLC) reported a 31 percent growth in attributable net income to P8.84 billion in the first nine months of the year.

In a disclosure to the Philippine Stock Exchange (PSE), the firm also reported a 49 percent jump in attributable net income to P3.06 billion in the third quarter of 2023. 

RLC said this was achieved despite a high base due to the recognition of profits from our China project in 2022. Excluding the effect of the China profit from last year, the net income attributable to parent for the first three quarters of the year would have surged 64 percent year-on-year.

“We are delighted with the outstanding performance across our diversified portfolio of businesses. These results reflect our commitment to provide timely execution in pursuit of excellence, implement strategic initiatives, and unwavering dedication to providing quality and value to our stakeholders,” said RLC President and CEO Frederick D. Go.

RLC’s consolidated revenues declined to P30.21 billion from P35.77 billion in the same period last year. EBITDA and EBIT stood at P16.66 billion and P12.65 billion, respectively. 

The combination of increased revenues and improved operational efficiencies led to register high operating margins, with EBITDA at 55 percent and EBIT at 42 percent.

RLC said 70 percent of its revenues were contributed by the investment portfolio, amounting to P21.04 billion, with 78 percent of overall EBITDA (P12.92 billion) and 71 percent of consolidated operating income, driven by the growth from malls and hotels businesses. 

The balance came from RLC’s development portfolio, with revenues and EBITDA amounting to P9.17 billion and P3.74 billion respectively.

Robinsons Malls, the cornerstone of RLC’s retail business, posted a 27 percent growth in total revenues surging to P11.78 billion, contributing 39 percent to the company’s consolidated revenues. 

The rental revenues experienced an impressive 32 percent increase, propelled by strong consumer spending and the normalization of business operations nationwide.

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RLC said its rental revenues is already six percent above pre-pandemic levels. Record-breaking operating numbers as EBITDA increased by 48 percent to P7 billion, while EBIT soared by 119 percent year-on-year to a record P4.44 billion.

The tourism and hospitality sector also made substantial contributions to the company’s performance. Robinsons Hotels and Resorts (RHR) experienced a revenue surge of 134 percent and registered a record breaking revenue of P3.25 billion in the first three quarters of 2023. 

Robinsons Offices demonstrated stable topline results, achieving a five percent growth from the previous year, totaling P5.54 billion in the first nine months of 2023. 

Robinsons Logistics and Industrial Facilities (RLX) experienced a healthy topline growth of 17 percent year-on-year, totaling P477 million in the first nine months of 2023.  

Robinsons Integrated Developments (RID) recognized revenues of P714 million from a portion of deferred gain on the sale of land to joint venture entities. RID oversees RLC’s three estates: including Bridgetowne, Sierra Valley, and Montclair.

New project launches significantly boosted the combined net sales take-up of RLC Residences and Robinsons Homes by 64 percent to P17.30 billion in the first nine months of 2023. 

Realized revenues expanded by 34 percent to P8.44 billion, supported by higher collections, faster construction progress, and strong equity earnings contribution from joint venture projects, totaling P1.74 billion, a 72 percent jump from 2022.

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The article was originally published in Manila Bulletin and written by James A. Loyola.

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