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Philippines: Century Properties profit falls 24% in Q1
MANILA, Philippines — Century Properties Group Inc. (CPG), the listed property developer of the Antonio family, posted a net income of P290 million in the first quarter of the year, down by 24 percent from P384 million a year ago.
Consolidated revenue stood at P2.8 billion during the period, flat compared to the P2.77 billion posted a year ago.
CPG chief finance officer Ponciano Carreon Jr. said the first quarter numbers were within expectations amid the challenging business environment brought about by the coronavirus disease 2019 or COVID-19 pandemic.
“The lower net income in the first quarter was not totally unexpected considering the three major shocks during the period: the Taal eruption in January, the coronavirus pandemic declaration in February, and the enhanced community quarantine declared in March, coupled with the company’s beefing up its cash war chest,” he said.
Nevertheless, he said, the company managed to sustain the level of revenues with a better mix in favor of affordable housing business and leasing portfolio which now contributed a combined revenue of P817 million or 29 percent of the pie compared to just P200 million or 13 percent of revenues for the same period last year.
“The lion’s share of the net income comes from the combined contribution of affordable housing business and leasing portfolio, which now stands at P173 million or 60 percent compared to just P55 million or 14 percent last year. The net income contribution of urban vertical projects is down to only P111 million or 38 percent of the total net income from P324 million or 84 percent share in net income last year,” CPG said in a regulatory filing.
As of end-2019, the company’s total assets stood at P54.6 billion or P1.2 billion higher than December 2019 while interest bearing liabilities went down by P1.4 billion as of the first quarter.
This brought the balance sheet to healthier levels with debt-to-equity down to 0.8x from 1.0x while the current ratio is up at 2.4x from 2.1x from last year.
Carreon said that despite the challenging environment, CPG’s strong 2019 performance and the company’s first quarter balance sheet provided a solid foundation for the group.
“We expect our high-margin affordable housing and leasing revenues to further grow and boost our bottom-line margins,” Carreon said.
Source: https://www.philstar.com/business/2020/06/09/2019519/century-properties-profit-falls-24-q1