Companies are reporting disappointing financial results for the first half half of the year as a result of the new coronavirus disease 2019 (COVD-19), well within expectation.
IMI posts $21M loss
Integrated Micro-Electronics Inc., (IMI) said it registered a $21.5 million loss for the first half of the year as a result of the challenging global environment brought by CVID-19.
Revenues reached $476 million, down 25 percent from $635 million last year as plant shutdowns in various operating regions significantly affected financial results.
“The global situation led to a 25 percent year-on-year reduction in top line sales while margins are likewise challenged with gross profit at $30.5 million equating to a 6.4 percent margin. Reduction of overhead costs by approximately $10 million through streamlining initiatives and government incentives helped mitigate the effects of the extended market softness,” the company said.
IMI said wholly owned businesses declined to $367 million of revenues, a 28 percent slide from last year.
“While some operating regions faced mandatory lockdowns, operating sites in Bulgaria and Czech Republic aligned with the demand slowdown of OEM customers by exercising voluntary reduced work schedules. As the automotive market outlook remains weak in the short term, IMI’s wide product portfolio has captured the increased demand from the consumer, industrial, medical, and telecom sectors,” it said.
Robinsons Retail sales hit by closures
Gokongwei-led Robinsons Retail Holdings Inc. reported that profit for the period hit P1.6 billion, down 4.1 percent from P1.7 billion last year also due to the COVID-19 pandemic
Consolidated sales hit P75 billion, down 2.9 percent from P77 billion last year.
“Sales were impacted by the temporary closure of the stores considered non- essential during the enhanced community quarantine (ECQ) imposed by government starting March 17, 2020,” Robinsons Retail said.
“Majority of the company’s stores across all formats resumed operations only in May 16, 2020 following relaxed quarantine restrictions. However, operating hours have been shortened and foot traffic is down,” it said.
Blended same store sales growth (SSSG) was a negative 3.8 percent in the first half.
Gross profit margins compressed by 200 basis points (bps) to 20.9 percent, primarily due to the temporary closure of non-essential stores.
Belle profit suffers as gaming operations halt
Belle Corp. said bottomline for the first half of the year stood at P222 million, 89 percent lower that last year’s P2.04 billion.
Revenues was at P2.01 billion, down 52 percent from P4.20 billion in 2019.
“The decreases in revenues and profits resulted primarily from COVID-19 related developments. The effects of the pandemic began with declining tourist arrivals prior to the implementation of the community quarantines nationwide and was compounded by the temporary suspension of gaming operations at City of Dreams Manila on March 16, 2020 in compliance with government initiatives to contain the virus,” the company said.
“Belle’s primary growth driver, its share in the gaming revenues at City of Dreams Manila, declined by 87 percent, from P1.88 billion in the first six months of 2019 to P248 million in the first six months of 2020, as gaming operations remained suspended for the entire second quarter of 2020. City of Dreams Manila is using this time to prioritize the health of its employees, to establish protocols that ensure a safe working and recreational environment and to support the government in keeping people safe in restarting the economy,” it added.
Belle said the pandemic also caused weak results at its lotto business, with unit Pacific Online Systems Corp., (Pacific Online), which leases online betting equipment to the Philippine Charity Sweepstakes Office (PCSO) for their lottery and keno operations. Pacific Online posting a 68 percent decrease in revenues, at P180 million P180 million compared to P559 million last year.
“With the exception of a few locations upon the easing of the quarantine in June 2020, outlets operated by Pacific Online were closed during the entire quarter,” it said.
Slow construction activities temper Holcim sales
Holcim Philippine Inc. registered a profit of P414 million for the period, down 70 percent from P1.42 billion last year.
Revenues reached P11.4 billion, down 25.97 percent from P15.4 billion last year, as volumes and prices fell after construction activity slowed due to measures to control the COVID-19 pandemic.
“With the lower revenues, EBITDA slid by 43.7 percent year-on-year to P1.7 billion from P 3.0 billion despite the company’s stern measures to manage all costs,” it said.
“The ongoing pandemic has caused challenges to the country. At Holcim Philippines, we took quick and decisive actions focused on safeguarding the health of our people, controlling costs, and preserving cash. This has helped us to mitigate the COVID-19 impact on our company. We remain optimistic about the future and our ability to deliver great value to our shareholders, customers, and communities while maintaining a healthy and safe workplace,” also said John Stull, Holcim president.
Wilcon ramps up operations
Wilcon Depot Inc. reported that profit for the period was at P352 million, down 64.6 percent from P995 million last year.
Sales was at P9.04 billion, down 23.2 percent from P11.78 billion last year.
Lorraine Belo-Cincochan, Wilcon president, said the company which sells construction materials and home furnishings had seen a “steady ramp up of its sales from the time all stores since it re-opened last May 16, 2020.
“We closed all our stores in Visayas and Mindanao from March 31 to reset and prepare the stores and our personnel for the new health and safety protocols. We value the health and safety of our people and customers, so even though we were allowed to operate in these regions, we took time to prepare our stores and our people. We gradually re- opened these stores beginning April 13, as soon as they were ready. It was only on May 16, when the government transitioned most of Luzon into MECQ (modified enhanced community quarantine) that we were allowed to open our Luzon stores,” she said.
“All our 58 stores were operating since then. Since we re-opened on May 16, we saw continued improvement in our sales performance week per week. We felt confident enough about the market that we proceeded with the opening of two new depots in Central Luzon in June. We now have 60 branches, of which 53 are depots and seven are Home Essentials,” she added.