FDC’s net profit soars 146% to ₱2.2 B in Q1
Filinvest Development Corporation (FDC) reported that its attributable net income jumped 146 percent to P2.2 billion in the first quarter of 2023 from the P874.2 million earned in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said its consolidated net income was recorded at P2.9 billion, rising by 110 percent from the comparative period of 2022.
The growth was achieved on the back of the income recovery of the businesses under the Filinvest group. Total revenues rose by 34 percent to P20.7 billion, faster than the increase in costs and expenses of 27 percent to P17.3 billion.
“We are pleased with the solid recovery of FDC having seen an acceleration in earnings across all the business units,” said FDC President and CEO Josephine Gotianun-Yap.
She added that, “We expect to sustain this momentum moving forward given the continuous improvement in business activity in the country despite some macroeconomic headwinds.”
“The consistently high domestic demand driven by strong household consumption should bode well for our businesses that are strongly focused on the middle market,” GotianunYap noted.
The company’s balance sheet remained healthy at the end of the first quarter of 2023, with total assets of P672.1 billion. FDC has adequate resources to pursue growth opportunities having a comfortable long-term debt-to-equity ratio of 0.8:1.
For this year, the Filinvest group is earmarking a total combined capital expenditure budget of P35 billion, of which about half is slated for the real estate and hospitality businesses.
The balance will go to investments in new ventures such as renewables, water and other urban solutions.
Banking and financial services accounted for 44 percent of FDC’s bottom line in the first quarter of 2023, contributing a net income of P1.5 billion to FDC.
This was followed by the property business, composed of the real estate and hospitality segments, which posted a combined P953.8 million or 28 percent of total.
The power subsidiary contributed P614.3 million in net income or 18 percent of total, while the balance of 11 percent came from other businesses.
EastWest Bank (EW) delivered a net income contribution to the group of P1.5 billion in the first quarter of 2023, 272 percent higher than the same period last year, as asset build-up in the latter half of 2022 started to bear fruit.
FDC’s real estate business, composed of listed subsidiary Filinvest Land, Inc. (FLI) and Filinvest Alabang, Inc. (FAI), contributed P1.0 billion in net income to the group in the first three months of 2023, 10 percent higher than the P920.6 million in the same period last year.
The power subsidiary, FDC Utilities, Inc. (FDCUI), reported a 25 percent improvement in both revenues and net income to P3.3 billion and P614.3 million, respectively.
Hotel operations under Filinvest Hospitality Corporation (FHC) saw a rebound in revenues as it grew 2.4 times to P685.9 million in the first quarter of 2023 compared to the same period last year. FLI boosts Q1 profit to P741 M
Earlier, Filinvest Land, Inc. (FLI), one of the country’s largest real estate developers, reported a 9 percent improvement in attributable net income to P741 million for the first quarter of 2023.
In a disclosure to the Philippine Stock Exchange, the firm said total consolidated revenues and other income also increased by 9 percent year-on-year to P4.69 billion in 2023 from P4.31 billion in 2022 as all major business segments posted growth.
“Our company achieved growth in all its business segments during the first quarter of the year, despite challenges arising from high interest rates and inflation,” said FLI President and CEO Tristan Las Marias. (James A. Loyola)