Golden Bria allots nearly P6-B capex

GOLDEN BRIA Holdings, Inc. is accelerating this year’s capital spending to P5.89 billion, in line with the company’s goal to beef up its land bank following its entry into the mass housing business.

In a regulatory filing, the Villar-led firm reported that P2.16 billion of the 2018 spending has been allotted for land acquisitions. Construction will corner P2.59 billion of the capex, while around P746.5 million will be for land development.

The remaining budget will go to memorial park development, memorial chapel construction, and for property and equipment.

This year’s capital expenditure is more than double the P2.79 billion Golden Bria actually spent in 2017.

The company noted there is no assurance that it can fully use up the allotted budget due to several factors, including possible cost overruns, construction or development delays, and the granting of regulatory approvals, among others.

The increase in this year’s capex came amid Golden Bria’s entry into the mass housing sector.

Previously called Golden Haven Memorial Park, Inc., the company was solely engaged in the death care business until 2017, when it moved to change its corporate name to Golden Haven, Inc. and primary purpose to reflect its intention to go into real estate development.

The company then officially changed its corporate name to the present one last March after acquiring Bria Homes, Inc., another Villar-led firm. Bria Homes develops mass housing projects across the country, with 27 developments across Bataan, Pampanga, Bulacan, Cavite, Laguna, Camarines Sur, Negros Oriental, Cagayan de Oro, and Misamis Oriental.

Golden Bria saw its net income jump by 288% to P699 million in 2017, versus the P180 million it generated the year before. On the other hand, net income attributable to Bria Homes stood at P482 million.

The profit growth was lifted by the 352% surge in revenues to P3.69 billion during the year, driven by higher real estate sales from Bria Homes recorded at P2.55 billion.

Under the death care business, sale of columbarium vaults and memorial lots went up by 32% to P1.02 billion, while interment income rose by 27% to P28 million for the period.

This year, the company cited higher interest and inflation rates as among the factors that may affect its performance.

“Higher interest rates tend to discourage potential consumers as deferred payments schemes become more expensive for them to maintain. An inflationary environment will adversely affect the company, as well as other memorial park developers, by increases in costs such as land acquisition, labor, and materials,” the company said.

Shares in Golden Bria gave up P6 or 1.95% to close at P302 each at the Philippine Stock Exchange on Wednesday.