PHINMA Corporation Revenues Rise to P23.8B in 2024

PHINMA Corporation reported consolidated revenues of P23.76 billion for the period ending December 31, 2024, higher than P21.27 billion in the previous year as strategic business units (SBUs) sustained their topline growth amid challenging market conditions. The Company’s consolidated net income and net income attributable to equity holders of the parent were at P936.87 million and P279.55 million, compared to the restated 2023 figures of P1.50 billion and P831.27 million respectively. Following a self-initiated review by the Company’s subsidiary Union Galvasteel Corporation (UGC), the Securities and Exchange Commission granted PHN’s request to restate its 2023 financial statement resulting to lower retained earnings.

The Company’s balance sheet strengthened in 2024 primarily due to its P1-billion stock rights offering last November and the P2.52-billion initial investment of leading global private equity firm KKR in PHINMA Education through Phoenix Investments II Pte. Ltd. PHN also booked additional equity of P1.45 billion after KKR acquired the PHINMA Education shares of former investors Kaizenvest, Asian Development Bank, and FMO.

“PHINMA’s continued sales growth has positioned the Group to benefit from margin optimization when our expansion projects are fully implemented. This is supported by our balance sheet initiatives, including raising equity funding, enabling our Strategic Business Units to make an even more positive, sustained impact on society,” said PHINMA Chief Financial Officer EJ A. Qua Hiansen.

PHINMA Education Holdings, Inc. (PHINMA Education) recognized revenues of P6.39 billion, reflecting a 17% increase compared to the previous year. Meanwhile, Consolidated net income for the same period stood at P1.19 billion. The robust performance was primarily driven by enrollment growth as the network expanded its total enrollment to 163,854 students across the Philippines and Indonesia in School Year (SY) 2024-2025, marking a 12% increase from the prior academic year. Additionally, PHINMA Education achieved an overall board passing rate of 88% and 25 board topnotchers in 2024.

The PHINMA Construction Materials Group (PHINMA CMG) - comprised of UGC, Philcement Corporation (Philcement), and PHINMA Solar Energy Corporation (PHINMA Solar) - reported combined revenues of P14.30 billion due to its enhanced sales and production capabilities. In addition, PHINMA CMG’s development of higher margin products and the expansion of sales channels enabled it to achieve a combined net income of P80.64 million in 2024 despite rising input costs and heightened market competition.

PHINMA Property Holdings Corp. (PHINMA Properties) registered revenues of P2.34 billion and a net loss of P98.28 million amid lower sales volumes and increasing interest costs. The decline is also attributable to upfront expenses related to expansion projects, the timing of revenue recognition, and the implementation of new Significant Financing Component accounting standards. The unbooked revenues will be recognized as construction progresses. PHINMA Properties looks to sustain gains from key developments particularly Saludad, its 21-hectare master-planned township in Bacolod. Meanwhile, the PHINMA Group sees significant opportunities in its newly organized PHINMA Community Housing Corporation as the vehicle for its renewed thrust in the underserved socialized housing sector.

Coral Way City Hotel Corporation (Coral Way), PHINMA Hospitality, Inc., and PHINMA Microtel Hotels, Inc. posted combined revenues of P591.63 million and combined net income of P65.58 million. Sustained demand from conventions, events and corporate bookings led to a pickup in both chainwide occupancy and the average daily rates, resulting in revenue growth for the aforementioned companies. Furthermore, PHINMA Microtel Hotels Inc.’s new franchise agreement for a TRYP by Wyndham condominium-hotel project in Samal Island, Davao also contributed to the revenue increase.

For CY 2023, PHN restated its financial report after UGC identified certain adjustments needed to correct certain line items resulting from the inconsistent application of certain accounting policies. These one off, non-cash adjustments reduced 2023 consolidated net income by P128.92 million and retained earnings at the start of the year by P893.48 million. Moving forward, UGC is reinforcing its internal controls. The company has also strengthened its finance team and executive leadership, mainly with the appointment of its new Chief Operating Officer Gil Amilbangsa. Mr. Amilbangsa, a University of the Philippines industrial engineering alumnus, brings three decades of leadership experience in steel manufacturing and operations here and abroad.

As of end-2024, PHN also reported a higher book value per share of P27.76 from P23.29 following the additional equity infusion and increase in equity reserves. PHINMA Corporation had cash and cash equivalents of P3.10 billion, consolidated total assets of P53.86 billion, and total stockholders’ equity of P15.82 billion.

​“We will keep harnessing strengths and synergies among our businesses, all while pursuing new ventures in fields like community housing which directly cater to the daily needs of our underserved countrymen. The Group also looks forward to executing our pipeline of projects and initiatives supported by our earlier investments geared towards improving more lives,” said PHINMA Chairman and CEO Ramon R. del Rosario, Jr.