PHINMA earnings rise 40% to P1.22 B in 9 months

PHINMA Corporation reported a 40 percent hike in core net income to P1.22 billion in the first nine months of 2023 from P871.48 million in the same period last year.

In a disclosure to the Philippine Stock Exchange (PSE), the firm said its consolidated revenues rose to P15.46 billion for the nine months ended Sept. 30, 2023, from the P13.43 billion of the same period last year.

This is due to record enrollment in its education business and consolidation of revenues of strategic business units beginning July 2023.

Improved revenues were driven by the excellent performance of the strategic business units, where PHINMA now has higher stake following the acquisition last July 2023. 

Through the P2.34 billion acquisition, which was disclosed to the PSE, PHINMA had increased its ownership in the group’s education, property development and hospitality businesses.

As it continues to serve the underserved sector, PHINMA Education Holdings Inc. (PHINMA Education), welcomed 146,546 students in the first semester of the school year 2023-2024, marking an 18 percent growth in its enrollment base compared to the same period last year.

Its revenues grew to P3.96 billion, a 38 percent improvement from P2.86 billion in the same period last year. Moreover, net income had also grown to P968.11 million for the first three quarters, from P568.05 million in the same period last year amid savings in operational costs.

PHINMA Construction Materials Group (PHINMA CMG), which is composed of Union Galvasteel Corporation, Philcement Corporation, and PHINMA Solar Energy Corporation, had combined revenues of P10.12 billion and a combined net income of P361.05 million. 

This was fueled by the pick-up in construction activities in the third quarter, after a slowdown in the first half of the year. Effective cost management also helped temper the impact from higher interest rates and a stronger dollar.

In subsidiary PHINMA Property Holdings Corporation (PHINMA Properties), where PHINMA Corporation’s effective ownership increased from 40.10 percent to 76.81 percent after the July 2023 acquisition, PHINMA consolidated net income for the third quarter of P141.23 million, which offset the equitized net loss of P83.95 million in the first half of the year. 

Following the acquisition of PHINMA Hospitality and PHINMA Microtel shares in July 2023, PHINMA Corporation consolidated net earnings of Coral Way City Hotels, PHINMA Hospitality Inc. and PHINMA Microtel Hotels Inc. for the third quarter, amounting to P20.56 million in addition to the equitized net income of Coral Way City Hotels of P4.97 million during the first half of the year.

Coral Way City Hotels owns Microtel Hotel by Wyndham Mall of Asia and its wholly-owned subsidiary, Krypton Esplanade Hotel Corporation (KEHC) owns TRYP Hotel by Wyndham Mall of Asia. 

PHINMA Hospitality Inc. is the management company that operates all the Microtel and TRYP by Wyndham properties in the Philippines. PHINMA Microtel Hotels, Inc. holds the master franchise of Microtel and TRYP by Wyndham in the country.