Phinma Corporation's Q12024 Consolidated Revenues Climb by 14% to P5.45 Billion

PHINMA Corporation began 2024 with consolidated revenues of P5.45 billion in the first quarter. This is a 14% increase over the P4.78 billion recorded from January to March of the previous year, as PHN's businesses demonstrate their commitment to improving people's lives by providing basic necessities for a dignified life. PHN also recorded a consolidated net income of P490.9 million, which included a core consolidated net income of P448.29 million.

PHINMA Education's robust success was the primary driver of the group's first-quarter results. PHINMA Construction Materials Group (PHINMA CMG) also reported strong results despite industry headwinds. PHINMA Properties reduced marketing costs to strengthen its bottom line, while the hospitality division saw increases in occupancy and average daily rates in the first three months of 2024.
 
PHINMA Education Holdings, Inc. (PHINMA Education) provides exceptional education and manages company operations with the particular requirements and resources of its students, many of whom are the first in their family to attend college. It owns nine institutions in the Philippines and manages one in Indonesia, which achieved full university status last year. PHINMA Education's consolidated revenues for the quarter were P1,877.34 million, up 26% year on year, owing mostly to strong enrollment growth, as second semester statistics for School Year 2023-2024 increased 14% over the same period last year. Improved collection efficiency also resulted in lower reserves for predicted credit losses. PHINMA Education reported a combined net income of P701.38 million from January to March.

PHINMA CMG is composed of Union Galvasteel Corporation (UGC), Philcement Corporation (Philcement), and PHINMA Solar Energy Corporation (PHINMA Solar). The three companies logged combined revenues of P3.05 billion and a combined net income of P27.71 million for the three-month period. The group continued facing hurdles in the quarter amid a challenging macroeconomic environment, which included a stronger U.S. dollar and elevated interest rates. Nevertheless, UGC saw higher sales volumes growth with commercial construction projects and residential expansions in full swing. Philcement also began regaining momentum after a sluggish January, but remained challenged given the tight competitive environment. It has also begun producing and selling its product Union Cement from the Petra Cement facility in Zamboanga del Norte after concluding talks with Petra Cement last year. Meanwhile, PHINMA Solar has started preparatory activities such as applications for incentives for the installation of the 58 projects the company secured during the second Green Energy Auction Program (GEAP II).
 
In July of last year, PHN expanded its investment in PHINMA Property Holdings Corp. (PHINMA Properties), indicating a renewed commitment to provide affordable homes. For the first quarter of this year, PHINMA Properties reported revenues of P316.75 million and a net loss of P136.19 million. Sales reservations continue strong, and PHINMA Properties will generate additional revenue as developments are built.

PHN purchased shares in PHINMA Hospitality and PHINMA Microtel in July of last year. The company's combined revenues from Coral Way City Hotel Corporation (Coral Way), PHINMA Hospitality, and PHINMA Microtel totaled P142.28 million in the first three months of 2024, with a net income of P19.07 million. The quarter saw ongoing revenue growth due to strong domestic traffic, increased international arrivals, and an increase in average daily rates across the network.

PHINMA Chairman and Chief Executive Officer Ramon R. del Rosario, Jr. said the Company's latest performance shows its commitment to serving underserved communities even as challenges linger. "We entered 2024 with optimism, as our education, construction materials, property development, and hospitality businesses build on investments and best practices from the previous year. We are challenging our business units to do in their sectors, starting with housing, what we are doing in education in serving the needs of the underserved," he said.
                                  
"All these we continue in line with our call to use business as a force for good, as a means to improve lives and the nation as a whole," added Mr. del Rosario.
 
"For the rest of the year, PHINMA will continue maximizing our strengths as we begin to reap the benefits of consolidating within the Group. Improving on our efficiencies and seeking further growth opportunities will bolster our efforts to make lives better by providing access to essential goods and services," said PHINMA President and Chief Operating Officer Dr. Chito B. Salazar.

​As of the conclusion of the first quarter, net income attributable to equity holders of the parent company was P229.57 million, with earnings of P0.80 per share. The core net income attributable to equity holders of the parent was P190.79 million. Total cash and cash equivalents amounted to P3.49 billion. Meanwhile, consolidated total assets increased to P43.90 billion, and total shareholders' equity was P10.84 billion.
 
"The latest financial figures demonstrate the resilience of our strategic business units and the Company as a whole despite the challenging environment in these industries. Drawing from these first quarter numbers, we look forward to PHINMA sustaining and even strengthening our fiscal health in the following quarters," PHINMA Chief Financial Officer EJ Qua Hiansen said.

PHINMA Corporation is a Filipino-owned conglomerate that seeks to build the nation through successfully run businesses that make lives better for nearly 70 years now. The Group provides communities in the Philippines and beyond the essentials to a dignified life through its education, construction materials, property development, and hospitality businesses. As it champions using business as a force for good, PHINMA believes in mutually serving the needs of society and the aspirations of shareholders.