PHINMA Posts 42% Decline in 1H 2020 Net Income

For the six-month period ended June 30, 2020, consolidated net income of PHINMA Corp. (PSE: PHN) was at P58.01 million, a decline of 42% year-on-year. Net loss attributable to equity holders of the parent amounted to P38 million; income contribution from Philcement Corporation was offset by the effects of COVID-19 and the Enhanced Community Quarantine (ECQ) on other business units. Consolidated revenue decreased to P5.11 billion from P5.64 billion during the same period in 2019.

Philcement Corp. posted net income of P224.2 million, an increase of 381% year-on-year due to increased sales and improved margins resulting from the commissioning of its cement processing facility in Mariveles, Bataan and from managing its fixed costs. During the period, Philcement sold 14.7 million bags with revenue of P2.358 billion, up 63% over the same period in 2019. Philcement had record sales in June with sales reaching 4.22 million bags as quarantine protocols were relaxed.

Union Galvasteel Corp. (UGC), the steel products subsidiary of PHINMA Corporation, posted revenue of P1.812 billion in the first half of 2020, compared to P2.850 billion in the first half of 2019. Net income for the six-month period declined to P37.5 million due to lower sales volume during the quarantine, mitigated by lower fixed costs and operating expenses.

PHINMA Education Holdings Inc. (PHINMA Education), the corporation’s education holding company, posted modest net income of P6.7 million for the first six months of the year as no school revenue was recognized from April to June due to the COVID-19 pandemic. Consolidated revenue of PHINMA Education was at P905.9 million over the same period.

In PHINMA Property Holdings Corp., gross profit margins improved to 45% due to higher selling prices, but delays in construction and completion of sales documents during the quarantine pushed back revenue booking. PHN equitized a net loss of P29 million in PHINMA Properties for the period.

Coral Way City Hotel Corp. was heavily impacted by the implementation of quarantine protocols which brought about travel restrictions and event cancellations. Bookings from Business Process Outsourcing companies within the Mall of Asia complex and shipping companies partially mitigated the revenue shortfall during the quarantine period. Equitized net loss in Coral Way amounted to P 2.9 million.

As of June 30, 2020, assets and total stockholders equity of PHINMA amounted to P23.2 billion and P8.3 billion, respectively.

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