DMCI Holdings, Inc. reported on Wednesday that its attributable net income fell by 32% in the first quarter to P7.62 billion from P11.26 billion in the previous year’s all-time high result.
The “high base effect” saw its revenues fall by 25% to P33.03 billion from P43.76 billion.
“We anticipate some earnings slowdown this year since we’re coming off a very high base. Our construction and real estate businesses are also still recovering from the impacts of the pandemic,” said DMCI Holdings Chairman and President Isidro A. Consunji in a statement.
“Overall, our results should still be better than our pre-pandemic level. We’re also expecting significant growth in our power businesses and Maynilad [Water Services, Inc.],” he added.
DMCI Holdings attributed the revenue decline to “lower commodity shipments, easing coal prices, reduced construction accomplishments, fewer real estate accounts that qualified for revenue recognition and higher real estate sales cancellations.”
Its top contributor during the three-month period were Semirara Mining and Power Corp., DMCI Project Developers, Inc. (DMCI Homes), and Maynilad. They accounted for 88% of total core income.
Semirara’s net income for the first quarter fell by 40% to P9.03 billion from P15.03 billion as the company reported “all-time high quarterly earnings” during the same period last year.
Its coal segment reported a 51% decline in net income to P6.69 billion from P14.22 billion due to lower revenues and a slower decline in cash costs. Its top line amounted to P15.49 billion, down 40% from P25.72 billion.
Its power segment’s net income more than doubled to P2.09 billion from P774 million. Its revenues increased by 59% to P7.66 billion from P4.81 billion previously.
DMCI Homes booked a 20% decline in net income for the period to P1.16 billion from P1.45 billion from the previous year.
The company’s revenues for the quarter also fell by 18% to P4.85 billion from P5.95 billion due to higher sales cancellations and fewer prior-year sales that qualified for recognition.
Maynilad saw a 55% increase in net income to P2.11 billion from P1.36 billion, driven by better revenues, profit margins and finance income.
Meanwhile, other business units DMCI Mining Corp. and D.M. Consunji, Inc. booked lower net income to P463 million and P263 million, down 15% and 26%, respectively.
DMCI Power Corp.’s core net income contribution for the quarter rose by 2% to P134 million from P132 million. It did not disclose its net income for the first quarter.
“The DMCI Group anticipates mixed results across its portfolio owing to challenging macroeconomic conditions, slowing global growth, and operating headwinds,” the company said.
At the stock exchange, DMCI shares fell by 0.63% or P0.06 to close at P9.46 apiece. — A. H. Halili