Empire East Land Holdings Inc., a subsidiary of Megaworld Corporation, reported a 16.4 percent drop in consolidated net profit to P178.7 million in the first quarter of 2022 from the P213.9 million posted in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said its consolidated revenues, composed of real estate sales, finance income, commissions, and other income increased by 6.7 percent to P1.2 billion from P1.1 billion in 2021.
The Group registered a 10 percent improvement in real estate sales to P1.1 billion in the first quarter of the year from P1.0 billion in the same period of 2021.
However, the cost of real estate sales jumped by a higher 34.5 percent amounted to P632.9 million in 2022 from P470.4 million in 2021 primarily due to the different composition of products sold for each year.
Gross profit dropped 19.6 percent to P454.0 million in 2022 form P564.8 million in 2021. Empire East said “the gross profit margin varies depending on the product mix and the competitiveness in pricing.”
The firm reported that its finance income rose to P69.3 million in 2022, from P46.9 million for the three months of 2021, were derived mostly from in-house financing and various advances from related parties.
Additional sources of revenue were commissions of a subsidiary, rentals of investment properties, and those obtained from other sources.
Commission and other income grew to P61.4 million in 2022 from P58.5 million in 2021.
Operating expenses posted a decrease from P300.8 million in 2021 to P258.9 million in 2022. Finance cost posted an increase from P77.3 million in 2021 to P82.5 million in 2022.