Sia-led firms post lower third-quarter net income

COMPANIES led by businessman Edgar J. Sia II — DoubleDragon Corp., DDMP REIT, Inc., and MerryMart Consumer Corp. — on Tuesday reported declining profits in the third quarter after booking lower revenues and incurring higher expenses.

DoubleDragon had a 94.5% decline in its third-quarter net income to P193.15 million from P3.54 billion last year. Its top line stood at P2.24 billion in the three months ending September, 73.6% lower than P8.47 billion a year ago.

Costs and expenses for the property leasing firm amounted to P1.38 billion, up by 11.3% from P1.24 billion in the previous year.

For the nine-month period, DoubleDragon’s attributable net income declined to P1.18 billion, down by 80.1% from P5.94 billion last year. Its top line as of September decreased by 49.3% to P5.66 billion from P11.16 billion a year earlier.

The company’s costs and expenses reached P3.36 billion, up by 3.8% from P3.24 billion a year ago.

In its press release, it said last year’s nine-month results included a P2.79-billion tax benefit with the implementation of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law.

“DoubleDragon since the past few years has been in the intense mode of putting in brick by brick its business fundamentals and simultaneously solidifying each and every underlying part of the business,” Mr. Sia said.

“Today, we are glad that the team has formed and calibrated its concept, brand and business units in four diversified real estate sectors,” he added.

DDMP, which invests in income-generating real estate, in a separate disclosure reported a 9.4% lower net income of P482.44 million in the third quarter from P532.26 million in the same period last year. Its topline was 3.9% lower at P582.88 million from P606.49 million a year ago. Costs and expenses during the quarter increased by 52.1% to P100.44 million from P66.02 million in the previous year.

Year to date, DDMP’s net income reached P1.54 billion, up by 44.4% from P2.77 billion in 2021. Its topline was flattish at P1.82 billion from P1.81 billion a year ago. Costs and expenses during the period were lower by 4.9% to P278.09 million from P292.53 million last year.

On Tuesday, its board of directors approved a cash dividend to all shareholders amounting to P486.2 million or around P0.03 per share with the payment date set on Jan. 9, 2023.

Meanwhile, MerryMart recorded a 25% lower attributable net income in the third quarter to P4.95 million from P6.59 million last year. Its topline reached P1.68 billion in the three months ending September, higher by 73.9% from P966.08 million a year ago.

Cost of sales in the quarter stood at P1.41 billion, 77% higher than the P798.17 million it booked in 2021.

Year to date, MerryMart’s attributable net income was slightly higher at P23.14 million than P23.01 million last year. Its revenues as of September rose 62.1% to P4.55 billion from P2.81 billion a year ago.

Its cost of sales during the period was placed at P3.78 billion, a 57.9% increase from the P2.4 billion booked in 2021.

According to a press release, the consumer-focused retailer’s nine-month revenue growth was boosted by sales growth of existing stores and contributions from pharmacy chain acquisitions.

Mr. Sia said MerryMart continues to be “firm and unwavering” in its pursuit for the group to become one of the “most dominant and highly relevant” consumer companies in the Philippines by 2030.

On the stock exchange on Tuesday, DoubleDragon shares declined by 1.87% or P0.13 to close at P6.81 each. In contrast, MerryMart shares climbed by 3.45% or P0.04 to P1.20 apiece. DDMP shares were unchanged at P1.30 each. —