Megawide Construction Corporation Reported P269 Million in Net Income in FY2023

Megawide Construction Corporation (Megawide) reported consolidated revenues of P18.6 billion in FY2023, a 26% increase over the previous year's P14.8 billion. The achievement was mostly driven by the construction business, which generated P18.1 billion in sales and accounted for 97% of the total. This was reinforced by enhanced landport operations and an early contribution from the real estate business, which totaled P348 million and P149 million, respectively. 

Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) for continuing operations increased more than ten (10) times to P3.60 billion, up from P353 million the previous year, with construction operations accounting for a large portion of the increase. The outstanding performance resulted in a consolidated net income from continuing operations of P269 million, a full turnaround from the P1.87 billion consolidated net loss recorded the year before. 

“Our EPC business sustained a robust performance as progress on existing projects went as planned. Based on our timelines, 2024 will continue to reflect increased completion and should translate to higher revenues based on the S-curve. In addition, our Pre-Cast and Construction (PCS) unit continued to build its external portfolio, helping boost performance from the construction segment,” said Edgar Saavedra, Megawide Chairman and CEO.
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For EPC, new projects signed in 2023 included Hotel 101 in Libis and the Lumbangan Solar Power Plant, bringing the overall order book to P43.1 billion as of the end of last year. In terms of PCS, supply contracts were closed last year for horizontal infrastructure projects like the Candaba Viaduct, a segment of MRT-7, CP-104 of the Metro Manila Subway, and a data center, totaling more than P2.0 billion. The team also won additional "Supply-and-Build" contracts for pre-cast materials at three (3) new PhirstPark Homes locations.
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The landport business also improved as foot traffic increased, hitting a high of 200,000 during the peak of the holidays in December 2023 and averaging 117,000 per day by the end of the year. As a result, the retail sector remained busy, with average spending per passenger (SPP) rising to P40 per passenger from less than P30 per passenger the previous year, owing to an increasing passenger base. Office leasing, on the other hand, drew more traditional tenants to fill leasable premises, accounting for 57% of all signed-up tenants as of the end of 2023.
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For real estate operations, PH1 World Developers, Inc. (PH1) reported an initial contribution of P148 million, which represents its portion since the July 2023 acquisition. The take-up of ongoing and new projects reached P4.6 billion, representing 916 units, and is likely to result in revenue in the future.

“As our operations steadily deliver the results, we also need to manage the balance sheet and reduce our interest-bearing liabilities to ease the impact of interest expenses on our profitability. We are confident this two-pronged approach will help boost our margins and further improve our bottomline,“ Saavedra added.

​Megawide Construction Corporation is among the most innovative engineering and infrastructure companies in the Philippines. Publicly listed since 2011, Megawide is the private partner of the Philippine Government for major public infrastructure projects such as the PPP for School Infrastructure Project Phases 1 and 2; the multi-year developments of Mactan-Cebu International Airport and the Parañaque Integrated Terminal Exchange; and the construction of Clark International Airport. In 2012, the company established Megawide Corporate Foundation, Inc., a non-profit organization focusing on social development projects.