Datem targets revenue increase

DATEM, INC., one of the country’s fastest growing construction companies, is targeting to increase its revenues by 10% every year until 2020 as it diversifies into sectors where it expects strong prospects for expansion, its top official said.

“Gross revenue is P8 billion this year then growing 10% every year up to 2020 because we started 2016 on our projection,” said Liberito V. Espiritu, chairman and chief executive officer of Datem in an interview on the sidelines of the Ernst & Young Entrepreneur Of The Year awards on Wednesday.

“Compared to last year, it’s on a plateau, but we’re looking at a five-year development plan for Datem,” he said.

He decline to give target income figures for the five-year period but said the projection is to “improve through productivity.”

“We continue to improve our productivity through innovation and technology for us to improve the numbers because construction is a very competitive industry,” he said. “You have to be one step or two steps ahead of your competitors.”

“For the margins, we improve our margins every year through the proper cost control and monitoring,” he said, adding that the company is “very conservative with our figures.”

Datem started out by providing complete engineering services and offering reinforced concrete precast wall and beam systems before expanding to low-cost housing projects. Its first big break was the construction of the Eugenio Lopez, Jr. building in Quezon City, with Mr. Espiritu’s precast technology going into the structure.

The company has since diversified to mid-rise and affordable housing projects and the supply of potable water, thus expanding its revenue source.

“We have Datem Homes on affordable housing. We have Datem Water on bulk water treatment. Those are related industries or specialization that is related to construction,” he said.

Mr. Espiritu said that of Datem’s new subsidiaries he expects the water business to take off first.

“I think the first one is bulk water business. That’s the basic needs of the Filipino people. We have 500 water districts all over the country [that have] no potable water. So the service that we give is to treat water source — river aside from deep well,” he said.

Along with Datem’s expansion plan is the aim to go public. The company had obtained approval from the Philippine Stock Exchange to list in 2015, but it later announced that a planned P4.66- billion initial public offering would be deferred to an unspecified date.

“It’s still a possibility but we have our underwriters who give us sound advice when to list or not to list,” he said. “If the story is interesting that’s the time to list.”

Datem is one of two pre-qualified companies that were shortlisted to build the P18.7- billion New Centennial Water SourceKaliwa Dam Project through public-private partnership under the previous administration.

Details of the project, which aims to increase Metro Manila’s raw water supply to meet future potable water demand, have since been amended, with funding shifted to official development assistance from China at P10.9 billion.

Mr. Espiritu said he was still waiting for the outcome of the aborted bidding process from the implementing agency, Metropolitan Waterworks and Sewerage System. —