Phinma Education seeks to sustain growth momentum thru expansions
PHINMA Education Holdings Inc. (PEHI) reported on Monday that its consolidated revenues grew by 79 percent year-on-year (YOY), and is expected to hit P4.4 billion in 2023—up P610 million from P3.79 billion in 2022.
At the sidelines of their press briefing in Makati City, Phinma Education President and CEO Chito B. Salazar told the Businessmirror that they are keen on achieving such improved performance, with the assumption that they will reach their target of 124,000 total enrollment with the resumption of in-person classes this coming School Year (SY) 2022-2023.
In SY 2021-2022 the education-services subsidiary of Phinma Corp. welcomed 95,503 students—a 31-percent increase of 72,746 students from the previous period. Of late, a total of 108,000 students have already enrolled for the next academic year (AY).
“Our enrollment actually extends a bit beyond class openings; most likely, until the end of August,” Salazar said. “We’re on track to meet the 124,000-enrollment target.”
The growth in combined net income of the company, however, “will be a little bit flat this year,” according to him.
The Phinma official attributed this to expenditures on the upgrade or construction of new classrooms, utility payments, hiring of additional teachers, as well as salary increases of their educators and staff, as faceto-face classes are set to resume this November.
“So that will eat up our revenue growth,” he said of their projected 2023 consolidated net profit, which will be about the same level as their recorded normalized net income of P873.6 million for this year.
From its audited financial statements for fiscal year ending March 31, 2022, PEHI’S net income is at P976.8 million, including the spill over for April and May.
“[SY 2020-2021 was] affected by the pandemic. Classes started late in 2020, so this resulted in a late end…in 2021,” said Phinma Education Finance Chief Daisy C. Montinola. “[Hence, we have] two months of revenue spill over and net income.”
Earnings before interest, taxes, depreciation and amortization, or EBITDA, amounted to P1.4 billion compared to P504 million last year—a margin of 37 percent. The company’s consolidated financial position also improved, with total assets growing from P12 billion to P12.4 billion YOY. Total liabilities went down from P5.9 billion in 2021 to P5.5 billion to 2022 due to the principal payment of its long-term debt of P3.4 billion.
Equity is at P6.895 billion, from P6.075 billion during the two periods in review. Montinola said: “This is higher by P820 million due to the movement of our retained earnings, because we generated a higher net income for the year, and then reduced by dividend that was declared during the year.”
The organization, made up of 10 schools in the Philippines and Indonesia, offers more than 110 programs covering the entire education chain. It boasts of a 75-percent board exam passing rate for first-time takers, as 71 percent of them were able to land their first job within a year. Majority of Phinma Education students come from the base of the socioeconomic pyramid, and often the first in their families to enter college.
“It is only with an intimate understanding of the needs and aspirations of our underserved, first-generation students can we make their lives better,” said Phinma Chairman and CEO Ramon R. del Rosario Jr.
In-person classes-ready
FAITHFUL on its thrust of providing quality education, Phinma Education is always on hand to serve the needs of its markets, especially at a time when the continuity of their education was most challenging for them at the height of the pandemic. More than ever, its network of schools is all set even prior to the resumption of face-to-face classes in the next four months.
“[Actually we were ready since] last year…because we were hoping that the government would be open for face-to-face classes. But only selected programs were allowed,” Montinola shared.
For the coming AY, Phinma Education will implement its Flex Learning system, with two days of in-person classes, and four days of remote and independent learning. It will distribute students’ in-person classes throughout the week to comply with the minimum public health standards.
Students and their teachers will be assigned to only one shift to limit the number of people inside the campus. Self-sufficient modules, alternative assessments, streamlined instructions and most important, remote coaching, will be maintained for Flex Learning, as well as Remote and Distance Learning, or RAD.
Launched in 2020, both systems rely on printed materials, as well as strong teacher-and-peer support through mobile data. The former will allow students to return to school once regulations allow, while the latter is completely home-based. Because the majority of its students could not afford to be online, Phinma Education partnered with Globe and PLDTSMART to give students mobile data every month.
“Our students want to learn, no matter what,” explained Strategy Chief Theresa Anne M. Menardo. “Their perseverance in the face of so many challenges inspires us to serve them better.”
Campus network expansion
WHILE some local private schools have closed down due to the ensuing health crisis, Phinma Education’s operation continues with expansions in the pipeline.
It recently opened the San Jose campus of Phinma-Araullo University, then acquired Phinma-Union College of Laguna and a new lot in Phinma-University of Pangasinan which will house a seven-story building with a roof deck.
Constructions are also in full swing to cater to an even bigger number of students. It is building a campus in Phinma-rizal College of Laguna, and a new branch of Phinma-cagayan de Oro College in Iligan City. The Southwestern University will open its new Dentistry Building in the next month or two.
“Our students are more employable, and our systems are more sustainable now because of our strategies and experiences over the past 18 years of rapid growth and expansion,” Dr. Raymundo P. Reyes, country chief for the Philippines, said while citing their institutionalization of its Environmental and Social Management System Policy, integration of material-recovery facilities and green technologies—including solar panels, rainwater-catchment systems, graywater facilities, and sewer-treatment plants across all its campuses.
“We’re hoping to double our enrollment over the next five [or] six years with our five-year expansion plan,” Salazar concluded.