Developer Century Properties Group, Inc. (CPGI) managed to maintain its consolidated net income at P1.1 billion for the first nine months of 2020, the same level during the comparative period last year.
In a disclosure to the Phlilippine Stock Exchange, the firm said it maintained strong earnings while sustaining the growth of its affordable housing (under PHirst Park Homes) and leasing segments despite the challenges brought by the coronavirus pandemic.
For the third quarter of the year, earnings surged 73.6 percent to P571.48 million from P329.11 million last year.
Consolidated revenue declined to P8.23 billion in the first nine months of 2020 from P9.79 billion in the same period last year while third quarter revenue dipped to P3.71 billion from P3.75 billion.
Third quarter revenue is 116 percent higher than the P1.7 billion in the second quarter and 32 percent more than the P2.8 billion in the first quarter of 2020.
Of the Php8.2 billion consolidated revenues for the first three quarters of 2020, CPG’s high-margin businesses posted combined contributions of 25 percent or P1.99 billion, 35 percent higher than P1.47 billion last year.
Out of the company’s consolidated net income, both segments saw a spike in combined contributions to 66 percent at P723 million versus 38 percent in the same period last year.
The higher contributions of PHirst and leasing further improved the company’s gross profit margin at 37 percent for the period of January to September 2020, compared to 36 percent in the same period in 2019.
Operating expenses dropped 23 percent as the company continued cost reduction measures to streamline operations and selling expenses.
CPG Chief Finance Officer and Head for Investor Relations Ponciano S. Carreon, Jr. said that, despite a dip in revenues at 16 percent for the first nine months of 2020, the company’s results for the period are at better than expected levels.
These reflect the well-timed mitigating measures that CPG’s professional management team had put in place to build robust liquidity, maintain a healthy balance sheet, and avert unfavorable business impacts given the present situation.
Carreon also attributed the stable earnings to the company’s prudent financial and liability management, as well as the digitalization initiatives it accelerated for the various stages of the home buying journey which supported healthy sales despite eight months of community quarantine.
“CPG is well-positioned to take on the business challenges in this new normal and navigate through this period while we plan for new launches and continue with our business expansion into our high-margin
segments,” he said.