DEL ROSARIO-LED conglomerate PHINMA Corp. reported a 63% decrease in its consolidated net income for the first half, down to P170.93 million from P456.74 million the previous year, in the face of economic challenges.
“The company focused on growing its business and expanding institutional partnerships in anticipation of market recovery given the challenging macroeconomic environment in construction materials and property development,” PHINMA Corp. said in a stock exchange disclosure on Wednesday.
First-half consolidated revenue grew by 17% to P10.37 billion from P8.89 billion in 2023 due to the higher enrollment of PHINMA Education Holdings, Inc. and the consolidation of the conglomerate’s property and hospitality businesses.
“The 17% increase was driven by higher enrollment in PHINMA Education’s rising volume in the PHINMA Construction Materials Group as well as revenues of the property and hospitality groups which were consolidated starting July 2023,” the conglomerate said.
PHINMA Education grew its first-half earnings by 36% to P418.13 million as consolidated revenue increased by 17% to P2.46 billion on higher enrollment in the second semester of school year 2023-2024.
The conglomerate’s construction materials group (CMG), consisting of Union Galvasteel Corp., Philcement Corp., and PHINMA Solar Energy Corp., saw a 59% decline in first-half net income to P106.49 million from P262.01 million last year. CMG recorded a 4.3% increase in combined first-half revenue to P6.87 billion.
PHINMA Property Holdings Corp. recorded a P313.1-million net loss as well as P590.43 million in revenues due to shortfall in volume and delayed construction.
The combined net income of Coral Way City Hotel Corp., PHINMA Hospitality, Inc., and PHINMA Microtel Hotels, Inc. reached P27.75 million while combined revenue totaled P296.97 million.
Meanwhile, PHINMA Corp. said its board approved a P1-billion stock rights offering consisting of primary common shares to support the conglomerate’s investment and expansion plans.
AB Capital & Investment Corp. will serve as the issue manager, book runner, and lead underwriter for the transaction. The offer will be listed in the fourth quarter.
“The stock rights offering reflects investor confidence in PHINMA’s growth prospects while allowing us funding flexibility as we pursue investments that will make lives better,” PHINMA Corp. Chief Financial Officer EJ A. Qua Hiansen said.
The stock rights offering will complete the conglomerate’s consolidation efforts, placing it in a better position to provide essentials to dignified lives through education, construction materials, property development, and hospitality.
“With this offering, PHINMA can better support its investments in current and upcoming business ventures — allowing us to cater to more Filipino families and communities. The Group will become stronger and better prepared for what lies ahead because of this,” PHINMA Corp. Chairman and Chief Executive Officer Ramon R. del Rosario, Jr. said.
On Wednesday, PHINMA Corp. shares rose by 4.43% or 95 centavos to P22.40 apiece. — Revin Mikhael D. Ochave
