DMCI Holdings, Inc.'s Q12024 Net Income Drops 25% to P5.6 Billion

Due to lower contributions from the majority of its companies, diversified engineering conglomerate DMCI Holdings, Inc. suffered a 25% decline in its first quarter consolidated net income, from P7.5 billion to P5.6 billion.

Group net earnings increased 19% from P4.7 billion to P2.9 billion in the first quarter of 2019, nearly doubling (93%) from its pre-pandemic net income of P2.9 billion.

Consolidated revenue decreased by 17%, from P33.0 billion to P27.4 billion, between January and March as a result of stable prices for coal, nickel, and electricity, as well as lower construction completions, fewer real estate accounts eligible for revenue recognition, and more cancellations of real estate sales.

“Market prices pose a significant challenge for us this year. We do not expect coal, nickel and electricity prices to recover to the highs of the past two years due to shifts in demand-supply dynamics,” said DMCI Holdings chairman and president Isidro A. Consunji.

“To mitigate these external challenges, we will focus on improving operational efficiency and refining our marketing strategies to enhance the value of our products and services,” he added.

Contribution Breakdown

​Semirara Mining and Power Corporation (SMPC) saw a 27% decline in net income contribution, from P5.1 billion to P3.7 billion, as the impact of increased coal exports and electricity dispatch was lessened by lower market prices.

The primary cause of DMCI Homes' P879 million contribution, a 12% decrease from P994 million, was the lag in revenue recognition from both new and existing accounts.

Maynilad, an affiliate, contributed P664 million, a 28% increase from P519 million. This rise was attributed to an improved average effective tariff, a better customer mix, and higher billed volume.

DMCI Power's contribution increased from P134 million to P264 million, nearly twice (97%) as a result of lower fuel costs and increasing electricity consumption and generation capacity.
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Due to project delays and fewer current projects, D.M. Consunji, Inc.'s contribution decreased by 64%, from P273 million to P98 million.
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Due to fewer shipments, lower nickel grades, and weaker selling prices, DMCI Mining had a dramatic change in its financial situation, going from a P473 million net income to a P22 million net loss.