PHINMA Corp. expects a recovery in profitability of its Construction Materials Group (CMG) and continued net income growth in PHINMA Properties this year.
PHINMA said recovery will be on the back of the continued stabilization of global supply chains and foreign exchange rates as well as decline in input costs.
The company said profitability of the education business will gain clarity as school opening schedules normalize every year.
PHINMA Education schools are also expanding capacity in anticipation of continuing enrollment growth.
PHINMA said hotels are also expected to post a strong recovery as occupancy rates and average daily rates continue to improve with leisure and business travel gaining momentum.
PHINMA closed 2022 with consolidated revenue of P17.7 billion, up 10 percent from last year.
Consolidated income was ₱1.5 billion, down by 18 percent due to factors including higher raw materials costs driven by global supply chain disruptions, a strong US dollar, and increased education costs due to a revision in school opening schedules.
PHINMA Education Holdings, Inc. became the country’s largest private education network as it welcomed 124,501 students for school year 2022-23, marking a 30 percent increase in annual enrollment. Consolidated revenue of P4.1 billion in 2022, an increase of 11 percent over the previous year. Net income during the period, however, was P633 million, a decrease from P839 million for the previous year, due to a revision in the school opening schedules, reflecting 9 months of regular semester for 2022 as compared to 11 months in 2021.
PHINMA CMG, composed of Union Galvasteel Corp. , Philcement Corp. and PHINMA Solar Corp. achieved an increase of 9 percent in revenue over the previous year with combined revenues of P13.2 billion for 2022. Net income for the construction group of P494.9 million for 2022 was lower than the P902 million posted in the previous year due to abnormally higher input costs amidst global supply chain issues and a strong US dollar.
From affiliates PHINMA Property Holdings Corp. and Coral Way City Hotel Corp., Phinma, equitized net income of P58 million in 2022, an increase over P32.9 million equitized in the previous year.
