Gotianun family-led Filinvest Development Corporation (FDC) reported a net income attributable to equity holders of the parent company of P8.9 billion in the first nine months of 2020, growing by 3 percent from the P8.6 billion in the same period last year, while consolidated net income was recorded at P11.3 billion, slightly dropping by 1 percent.
The net income growth that FDC continued to demonstrate amidst the COVID-19 pandemic disruptions was brought about largely by the higher revenue contribution from its banking subsidiary combined with lower direct costs.
Cost control measures, particularly the decline in direct costs by 36 percent to P15.6 billion, offset the 9 percent drop total revenues and other income to P57.1 billion and the 18 percent increase in operating expenses to P28.8 billion in the first nine months of 2020.
“We are pleased with the strength and resilience of the Filinvest Group. Our banking and sugar businesses covered the gap caused by the hospitality and real estate businesses which are the most affected by the pandemic-related government restrictions… Overall, we are confident that our balanced portfolio can withstand the current crisis and we are prepared to take advantage of opportunities when the current situation turns around,” said FDC President and CEO L. Josephine G. Yap.
The company’s balance sheet remained healthy at the end of the first nine months. Debt-to- equity stood at 0.94:1 while net debt-to-equity was at 0.39:1. This is on the heels of FDC’s recent successful offering of US$200 million fixed-rate five-year bonds in September.
The bonds were issued to further optimize the company’s capital structure as well as finance new investments in infrastructure and sustainable solutions such as solar energy, water and wastewater services.
EastWest Bank (EW) delivered a net income contribution to the group of P5.8 billion in the first nine months of 2020, 32 percent higher than the same period last year, driven by better margins from its core lending and deposit-taking businesses, and higher trading gains.
FDC’s real estate business composed of listed subsidiary, Filinvest Land, Inc. (FLI), and Filinvest Alabang, Inc. (FAI) contributed P5.1 billion in net income to the group. This was lower by 15 percent from the first nine months of 2019 as the segment was affected by lower sales take-up, completion delays resulting from the construction halt in mid-March, and the grace period granted to the homebuyers during the ECQ period for the payment of their purchases which delayed real estate sales recognition.
Power subsidiary, FDC Utilities, Inc. (FDCUI), registered a net income of P1.8 billion, growing by 3 percent from the same period last year. Revenues declined by 17 percent to P6.4 billion as volume contracted by 19 percent following lower demand from its customers during the ECQ period.
Hotel operations under Filinvest Hospitality Corporation (FHC) remained the most affected by the pandemic in the group. FHC posted a revenue decline of 59 percent to P981 million in the first nine months of 2020 as occupancy rates dropped across the properties, leading to a net loss of P487 million from a net income of P266 million in the same period last year. – BusinessNewsAsia.com