Filinvest profit jumps 19% in first 6 months

The improved earnings of some of its subsidiaries amid the coronavirus disease 2019 (Covid-19) pandemic helped Filinvest Development Corp.’s consolidated net income rise to P9.1 billion in the first six months of 2020.

In a disclosure on Friday, the Gotianun-led holding company said the amount was a 19-percent increase from P7.7 billion in the same period last year, and that its attributable net income to equity holders jumped by 24 percent to P7.2 billion from the year-earlier P5.8 billion.

Total revenues and other income declined by 4 percent to P40.6 billion in January to June.
Filinvest credited the double-digit growth to the higher revenue contributions of its banking and sugar units, as well as cost-control measures implemented.

Banking arm East West Banking Corp. (EastWest) contributed a net income of P4.3 billion in the period, up 60 percent from a year earlier, driven by better margins from its core lending and deposit-taking businesses and higher trading gains.

On a standalone basis, EastWest’s net interest income, accounting for 73 percent of revenues, increased by 38 percent to P13.4 billion.

Filinvest’s real estate business, made up of Filinvest Land Inc. and Filinvest Alabang Inc.
(FAI), contributed P4.6 billion, an 8-percent growth from last year, bolstered by the P2.9-billion income recognition of the transaction between FAI and Mitsubishi Corp. last October.

The pandemic and the enhanced community quarantine (ECQ) the government imposed to halt its spread dragged the sales revenues of its lots, condominium and residential units by 55 percent to P4.9 billion.

“This can be attributed to lower sales takeup, delayed revenue recognition due to completion delays resulting from the construction halt in mid-March and the grace period granted to the homebuyers during the ECQ period for the payment of their purchases, which also affected real estate sales recognition,” Filinvest explained.

Rental revenues also slipped by 3 percent to P3.5 billion as growth in office leasing was tipped by the decline in retail mall revenues.

Power subsidiary FDC Utilities Inc. registered a net income of P996 million, down 10 percent, while its revenues decreased by 21 percent to P4.2 billion as volume dropped by 25 percent on weakened customer demand.

Sugar arm Pacific Sugar Holdings Corp. contributed P310 million, up 19 percent. Filinvest Hospitality Corp.’s revenues fell by 48 percent to P837 million after travel restrictions and lockdown measures took effect. As a result, the unit incurred a P298-million loss, a turnaround of its P223-million net profit year-on-year

“We are pleased with our robust results in the first half of 2020, but we remain cognizant of the risks of a prolonged quarantine period and are [implementing] measures to mitigate its negative impact,” Filinvest President and Chief Executive Officer Jo sephine Yap said.

“The continuing rise in the number of Covid-19 cases in the country and the absence of a vaccine to curb the spread of the virus [brought] a lot of uncertainties to this day. The events continue to unfold, but we have also learned to adjust in order to lessen the impact of the disruptions brought about by the pandemic,” she added.

Source: TheManila Times