Phinma's attributable profit drops 66% on higher expenses, losses of property business

Del Rosario-led Phinma Corporation (PHN) reported a 66 percent drop in attributable net income to ₱279.55 million last year from the restated 2023 profit of ₱831.27 million due to high expenses and losses of its property business.

In a disclosure to the Philippine Stock Exchange, the firm said consolidated net income dropped 37.5 percent to ₱936.87 million in 2024 from ₱1.



50 billion in the prior year. Following a self-initiated review by the Company’s subsidiary Union Galvasteel Corporation (UGC), the Securities and Exchange Commission granted PHN’s request to restate its 2023 financial statement resulting to lower retained earnings. “While this is down from the same period last year due to lower selling prices and higher operating costs, interest expense and tax, it is a turnaround from the (attributable net loss) in the first half of P22.

1 million,” Phinma noted in the third quarter report. Consolidated revenues improved by 11.7 percent to ₱23.

76 billion last year from ₱21.27 billion in 2023 as strategic business units (SBUs) sustained their topline growth amid challenging market conditions. “PHINMA’s continued sales growth has positioned the Group to benefit from margin optimization when our expansion projects are fully implemented,” said PHINMA Chief Financial Officer Edmund Alan A.

Qua Hiansen. He noted that, “This is supported by our balance sheet initiatives, including raising equity funding, enabling our Strategic Business Units to make an even more positive, sustained impact on society.” Phinma Education Holdings, Inc.

recognized revenues of ₱6.39 billion, reflecting a 17 percent increase compared to the previous year. Meanwhile, Consolidated net income for the same period stood at ₱1.

19 billion. The robust performance was primarily driven by enrollment growth as the network expanded its total enrollment to 163,854 students across the Philippines and Indonesia in School Year (SY) 2024-2025, marking a 12 percent increase from the prior academic year. The Phinma Construction Materials Group - comprised of UGC, Philcement Corporation (Philcement), and Phinma Solar Energy Corporation (PHINMA Solar) - reported combined revenues of ₱14.

30 billion due to its enhanced sales and production capabilities. In addition, PHINMA CMG’s development of higher margin products and the expansion of sales channels enabled it to achieve a combined net income of ₱80.64 million in 2024 despite rising input costs and heightened market competition.

Phinma Property Holdings Corp. registered revenues of ₱2.34 billion and a net loss of ₱98.

28 million amid lower sales volumes and increasing interest costs. The decline is also attributable to upfront expenses related to expansion projects, the timing of revenue recognition, and the implementation of new Significant Financing Component accounting standard. The unbooked revenues will be recognized as construction progresses.

Coral Way City Hotel Corporation (Coral Way), Phinma Hospitality, Inc., and Phinma Microtel Hotels, Inc. posted combined revenues of ₱591.

63 million and combined net income of ₱65.58 million. Sustained demand from conventions, events and corporate bookings led to a pickup in both chainwide occupancy and the average daily rates, resulting in revenue growth for the aforementioned companies.

Furthermore, PHINMA Microtel Hotels Inc.’s new franchise agreement for a TRYP by Wyndham condominium-hotel project in Samal Island, Davao also contributed to the revenue increase. For 2023, PHN restated its financial report after UGC identified certain adjustments needed to correct certain line items resulting from the inconsistent application of certain accounting policies.

These one-off, non-cash adjustments reduced 2023 consolidated net income by ₱128.92 million and retained earnings at the start of the year by ₱893.48 million.

Moving forward, UGC is reinforcing its internal controls. “We will keep harnessing strengths and synergies among our businesses, all while pursuing new ventures in fields like community housing which directly cater to the daily needs of our underserved countrymen. “The Group also looks forward to executing our pipeline of projects and initiatives supported by our earlier investments geared towards improving more lives,” said PHINMA Chairman and CEO Ramon R.

del Rosario, Jr..