Accelerated Growth Expected as PHINMA Corporation Ups Revenues by 45%
For the six-month period ended June 30, 2018, PHINMA Corporation’s
revenues increased by 45% year-on year to P4.5 billion. PHINMA
Corporation, President & CEO, Ramon R. del Rosario, Jr. noted that
“The first half financial performance of PHINMA was significantly
stronger than the same period last year” and that the corporation “will
continue to strive to deliver positive results for our shareholders
moving forward.”
Del Rosario explained that continuing strong growth is expected
especially in the Education and Construction Materials businesses.
PHINMA Education’s consolidated revenues increased 14% to P1.1
billion in the first half of 2018, due to higher enrolment. In fact, for
the 2018-2019 school year, enrolment level is at its highest with more
than 70,000 students nationwide, a growth of 13% from the 2017-2018
school year. “Through this business, we are continuing our mission of
making lives better by being the market leader in providing quality,
affordable and accessible education to those most in need” Del Rosario
further stressed.
PHINMA Corporation recently infused another P750 million into PHINMA
Education in December. The proceeds were used to acquire a sixth
school—St. Jude College Manila—and to purchase additional shares in
Southwestern University in Cebu, bringing PHINMA Education’s share of
Southwestern University to 84.34%.
In support of the Government’s Build, Build, Build initiative, PHINMA
has focused on accelerating growth of its construction materials
businesses. Revenues of subsidiary Union Galvasteel Corporation (UGC)
increased 59% to P3.3 billion on higher sales of construction materials
including cement sales, posting a net income of P135 million for the
first half. Successful strategic expansion included additional wall and
ceiling construction applications as well as additional geographic
distribution networks in order to improve sales, yielding an increase of
31% from 3.87 million sheets sold in the first half of 2018 to 5.08
million sheets for the same period this year.
“Accelerated growth in our construction materials businesses is
expected for the rest of 2018 and the coming years with our recent
investment of P225 million in PhilCement Corporation,” Ramon del Rosario
also highlighted. The investment partially funded construction of a 3
million ton cement terminal in Mariveles, Bataan, the largest in the
country.
For its energy and property development businesses, Del Rosario
explained that “management is working to address issues affecting our
energy business which remains challenged due to the excess market supply
environment and increased costs of excise taxes and fuels while our
real estate affiliate, PHINMA Properties, has improved margins and was
profitable in the first half of this year.”
Consolidated net income of PHINMA Corporation was at P87.5 million,
more than triple the level for the same period in 2017. Consolidated net
income attributable to equity holders of the parent amounted to P43
million, an increase from P1.3 million in the first half of 2017. PHINMA
Corporation has a healthy balance sheet with cash and cash equivalents
of P1.6 billion that are set aside for further expansion.