DMCI revenue down by 7% at end of Q3

DM Consunji Inc. (DMCI) announced that its revenues for the nine-month period of 2022 declined by 7 percent to P15.33 billion in this year from P16.48 billion in 2021.

According to the company, this was because of the slowdown in project bidding and contract awarding in both public and private sectors. This is why its net income for the first three quarters of 2022 increased by only 1 percent from P785 million in 2021 to P796 million in 2021.

DMCI’s order book also had a moderate decline in its order book for the same period as P8.40 billion worth of contracts and P1 billion in change orders were recorded against P13.30 billion in contracts booked for the January to September period of 2022.

From P49.3 billion at the end of 2021, the company’s order book went down by 8 percent to P45.30 billion at the end of the nine-month period of 2022.

“We expect formidable headwinds over the medium term because of persisting high inflation, rising interest rates and anemic demand for commercial and office spaces,” Jorge Consunji,

DMCI president and chief executive officer, explained. “Public infrastructure projects could provide some upside, but it would still depend on the rollout strategy and spending priorities of the government.”

In the third quarter of this year, DMCI bagged contract package 102 of the Metro Manila Subway project and said they plan to join the bidding for three more sections of the project as well, which could be as early as 2023.