PHINMA Corporation (PHN) posted higher consolidated revenues of ₱8.63 billion in the 1st half of 2022, marking a 10.14% increase from ₱7.83 billion over 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. 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,” said PHINMA Chairman and CEO Ramon R. del Rosario, Jr.
“Early this year, we announced our new set of changemakers. The management team will carry out our strategic plans to sustain our forward momentum while reinforcing the company’s mission of making lives better by providing the essentials of dignified lives for families and communities,” he added.
PHINMA’s Construction Materials Group (CMG), composed of Union Galvasteel Corporation (UGC), Philcement Corporation (Philcement), and PHINMA Solar Corporation (PHINMA Solar), posted consolidated revenues ₱7.07 billion for the first half of 2022, up by 13% from the same period last year. Net income of CMG for the period was lower at ₱443.28 million due to temporarily higher costs amidst global supply chain issues.
PHINMA Education Holdings, Inc. (PHINMA Education), the PHINMA Group’s education arm, reported consolidated revenue amounting to ₱1.37 billion. PHINMA Education’s 1H revenue is lower by 6.82% than the first half of 2021, which included revenues of ₱576 million from the two months spillover of 2nd semester SY2020-2021 due to late end of classes in 2020. PHINMA Education’s normalized revenue for this period grew by 52.89% due to a 30% increase in enrollment from 72,746 students in SY2020-2021 to 95,503 students in SY2021-2022. PHINMA Education’s net income for the period declined to ₱96.9 million due to higher variable costs related to higher enrollment and other one-time charges.
During the period, PHN’s subsidiary, Asian Plaza Inc., posted net income of ₱28.21 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 ₱18.24 million during the period compared to an equitized net loss of ₱20.06 million during the same period last year. This was primarily attributable to higher booked units as well as improvements in gross margins.
Equitized net loss in Coral Way City Hotel Corporation (Coral Way) amounted to ₱5.35 million, as the company continued to shift its focus to business and leisure markets given the reduced demand for quarantine bookings. Cash from operations nevertheless remained positive on the back of increased contributions from leisure and corporate bookings.
Despite the strong growth in consolidated revenue, PHN’s consolidated net income declined to ₱639.07 million as compared to ₱783.56 million in the first half of 2021, primarily due to an 18.20% increase in costs amounting to ₱1.04 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 ₱95.21 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% compared to ₱439.34M in the first six months of 2021.
PHINMA Corporation ended the period with cash and cash equivalents of ₱3.36 billion. As of June 30, 2022, consolidated total assets and total stockholders’ equity amounted to ₱30.48 billion and ₱10.11 billion, respectively.
