Del Rosario controlled-PHINMA Corporation is optimistic on growth this year and is raising its capital expenditure budget by 50 percent to P4.5 billion from the P3 billion it allocated for the expansion of its businesses in 2023.
In a media briefing after the firm’s annual stockholders’ meeting, PHINMA Chief Financial Officer Edmund Alan A. Qua Hiansen said this year’s capex will be funded by a combination of debt and equity, including existing cash on hand.
The firm’s property business is also expecting to generate P1.3 billion to P1.4 billion in cash, most of which will be coming from collections done in previous years.
Qua Hiansen said PHINMA’s education business will take about half or P2.25 billion out of of this year’s capex budget while P1.75 billion will be allocated for the property sector. The remaining P500 million is divided between hospitality, PHINMA Corporation, and construction materials.
“We expect very healthy growth (this year)… We feel we're well-placed in all of the sectors where we're operating. The outlook looks very bright, I think, in all of them. And therefore, we're quite bullish as a group,” said PHINMA Chairman and CEO Ramon R. Del Rosario, Jr.
He added that, while the group does not share profit guidance, “as you know, all our businesses are very robust and energetic and we expect a stronger top line.”
PHINMA Corporation posted a 40 percent jump in consolidated core net income to P1.67 billion last year while consolidated net income grew 6.5 percent to P1.63 billion from P1.53 billion in 2022.
The firm said its consolidated revenues rose 20 percent to P21.27 billion, boosted by the sustained growth of its education business which continued to see enrollment growth.
The group’s performance also benefited from the improved cost efficiency efforts of the Construction Materials Group (PHINMA CMG) and PHINMA Property Holdings Corp. (PHINMA Properties).
The hospitality business also took advantage of the continued recovery in domestic travel and events, particularly in the Mall of Asia area.
"Our stronger figures in 2023 prove that business can indeed be a force for good both for the general Filipino public and the company's stockholders," said Del Rosario.
Meanwhile, PHINMA President and COO Dr. Chito B. Salazar emphasized the importance of strengthening synergies among businesses this year.
"The improved coordination and cooperation among our units have allowed them to better maximize each other's efficiencies and complement each other's strengths. This will be crucial even in the years ahead," he said.