PHINMA Corporation, a conglomerate controlled by the Del Rosarios, plans to raise up to P1 billion from a stock rights offering (SRO) in the fourth quarter of this year.

In a disclosure to the Philippine Stock Exchange (PSE), the firm said its Board of Directors approved the planned SRO at its meeting on Aug. 6, 2024.

The proceeds of the offering will be used by PHINMA to support its subsidiaries in relation to their relevant expansion plans, increasing capital for PHINMA's potential new ventures, and for general corporate purposes.

The PHINMA board also approved the investment of up to P210 million in Union Insulated Panels Corporation’s (UIPC) Insulated Panel Plant Project through Union Galvasteel Corporation (UGC), a 98 percent-owned subsidiary of PHINMA. UGC is 100 percent owned by UIPC.

Meanwhile, PHINMA reported that its consolidated net income fell 63 percent to P170.93 million in the first half of 2024 from the P456.74 million earned in the same period last year.

However, the firm reported an attributable net loss of P22.1 million for the first semester of the year, a 110 percent plunge from the attributable profit of P208.76 million in the same period of 2023, partly due to losses in its property development unit.

PHINMA's consolidated revenues grew 17 percent to P10.37 billion for the six-month period ended June 30, 2024, from the P8.89 billion recorded in the same period last year.

The firm said that this was achieved in the face of continued robust performance by PHINMA Education and a challenging macroeconomic environment marked by high interest rates, the depreciation of the Philippine peso, and the relatively slow pace of government infrastructure projects in the first quarter. 

Revenue growth was driven by higher enrollment in PHINMA Education, rising volume in the PHINMA Construction Materials Group (CMG), and revenues of the property and hospitality groups, which were consolidated starting July 2023. 

“The Company focused on growing its businesses and expanding institutional partnerships in anticipation of market recovery given the challenging macroeconomic environment in construction materials and property development,” PHINMA said. 

PHINMA Education Holdings Inc. sustained its robust performance by posting a 17 percent improvement in consolidated revenues to P2.46 billion in the first six months of 2024 while earnings grew by 36 percent year-on-year to P418.13 million. 

The PHINMA Construction Materials Group (PHINMA CMG), composed of Union Galvasteel Corporation (UGC), Philcement Corporation (Philcement), and PHINMA Solar Energy Corporation (PHINMA Solar), posted combined revenues of P6.87 billion and a combined net income of P106.49 million for the first half of 2024. 

UGC and Philcement both posted growth in sales volumes compared to the same period last year despite the challenges from the tight competitive environment, depreciation of the peso, and elevated interest rates. 

PHINMA CMG saw a 25 percent and 185 percent quarter-on-quarter improvement in revenues and net income, respectively, from the first to the second quarter of 2024. 

PHINMA Property Holdings Corp. recognized P590.43 million in revenues for the first six months of the year and recorded a net loss of P313.1 million due to a shortfall in volume and delayed construction. 

In the first half of 2024, the combined revenues from Coral Way City Hotel Corporation, PHINMA Hospitality. Inc., and PHINMA Microtel Hotels Inc. were P296.97 million. Meanwhile, the combined net income stood at P27.75 million. 

Revenues for the hospitality group continued to increase versus the same period last year, propelled by the rebound in leisure travel and the continued demand from the corporate segment for events and meetings.