PHINMA posts higher consolidated revenues in Q3 due to record enrollment and increased stake in key business units

PHINMA Corporation consolidated revenues rose to ₱15.46 billion for the nine months  ended September 30, 2023, following record enrollment in the Education business and consolidation of revenues of strategic business units beginning July 2023.

The reported consolidated revenue surpassed the ₱13.43 billion of the same period last year. PHINMA’s core net income also rose by 40% to ₱1.22 billion from ₱871.48 million for the same period last year.

Improved revenues were driven by the excellent performance of the strategic business units, where PHINMA Corporation now has higher stake following the acquisition last July 2023. Through the ₱2.34 billion acquisition, which was disclosed to the Philippine Stock Exchange, PHINMA Corporation 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% growth in its enrollment base compared to the same period last year. Its revenues grew to ₱3.96 billion, a 38% improvement from ₱2.86 billion in the same period last year. Moreover, net income had also grown to ₱968.11 million for the first three quarters, from ₱568.05 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 ₱10.12 billion and a combined net income of ₱361.05 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% to 76.81% after the July 2023 acquisition, PHINMA Corporation consolidated net income for the third quarter  of ₱141.23 million, which offset the equitized net loss of P83.95 million in the first half of the year. The Group’s property development arm aims to help address the country’s housing backlog by building sustainable communities. PHINMA Properties is continuing to expand its product portfolio through new township projects which open opportunities of synergy with the subsidiaries of the Group.

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 ₱20.56 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.

PHINMA Corporation’s core net income attributable to the shareholders of the parent, for the first nine months of 2023 rose to ₱2.59 per share, 54% higher than the ₱1.68 per share recorded for the same period in the previous year.

Focus on cash generation as evidenced by a strong, parent debt service coverage ratio of 7.63x as of September 30, resulted in a balance sheet with cash and cash equivalents  of ₱3.94 billion. Consolidated total assets was ₱42.31 billion and total stockholder’s equity amounted to ₱10.63 billion as of September 2023.