Supply chain issues reduce Phinma income in January-June

Conglomerate Phinma Corp. said its attributable income fell 7 percent to P406.83 million in the first half from last year’s P439.34 million due to rising costs.

Revenues grew 10 percent to P8.63 billion for the period from last year’s P7.83 billion, supported by higher enrollment figures and the strong performance of 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,” company chairman and CEO Ramon R. del Rosario Jr. said.

“Early this year, we announced our new set of change makers. 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.”

The company said its cost rose 18 percent during the period to P1.04 billion.  The increase in cost was offset by the improvement in performance of Phinma Properties as well as the P95.21 million in gains from its investment in Song Lam Cement Joint Stock Corp.

The company said its construction materials group, composed of Union Galvasteel Corp., Philcement Corp. and Phinma Solar Corp., posted consolidated revenues P7.07 billion for the first half, up by 13 percent from last year. The group’s net income was lower at P443.28 million due to temporarily higher costs amid global supply chain issues.

Phinma Education Holdings Inc. reported consolidated revenue amounting to P1.37 billion, lower by almost 7 percent from last year. The figure included revenues of P576 million from the two months spillover of the second semester of school year 2020-2021 due to the late end of classes in 2020.

Phinma Education’s normalized revenue for this period grew 53 percent due to a 30-percent increase in enrollment to 95,503 students in school year 2021-2022 from 72,746 students in 2020-2021. Net income for the period fell to P96.9 million due to higher variable costs related to higher enrollment and other one-time charges.

Asian Plaza Inc. posted net income of P28.21 million mainly due to a gain on the sale of real property.

In its affiliate, Phinma Property Holdings Corp., the company recorded an equitized net income of P18.24 million during the period compared to an equitized net loss of P20.06 million 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 Corp. (Coral Way) amounted to P5.35 million, as the company continued to shift its focus to the 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.