Business units drive FDC’s nearly 33% income growth

FILINVEST Development Corp. (FDC) on Tuesday reported 32.6% higher attributable net income for the second quarter to P1.79 billion from P1.35 billion, due to gains from its business segments.

In its financial statement, the company booked a top line of P19.73 billion, 21.5% higher than P16.24 billion in the same period last year.

“We are very encouraged by the continued recovery of our businesses. We look forward to sustaining our growth momentum for the balance of the year. We are working to make the businesses and the entire organization even stronger under the leadership of newly appointed executives,” said FDC President and Chief Executive Officer Chiqui A. Huang.

FDC’s banking and financial services unit East West Banking Corp. contributed the bulk of revenues for the quarter, increasing by 32.2% to P8.33 billion from P6.3 billion the previous year.

The company’s real estate segments Filinvest Land, Inc. and Filinvest Alabang, Inc. saw a combined top line contribution of P3.46 billion, a 6.1% rise from a year ago’s P3.25 billion.

FDC’s power and utility operation, FDC Utilities, Inc., accounted for P3.93 billion, an increase of 23.6% from P3.18 billion. Hospitality operations led by Filinvest Hospitality Corp. saw a 19.2% increase to P645.22 million.

Sugar operations contributed P1.55 billion to FDC’s top line for the period, 15.7% higher than P1.34 billion the prior year.

In the first semester, the company’s attributable net income reached P3.9 billion, higher by 77% than P2.2 billion a year earlier and driven by a 29% increase in revenues to P42.5 billion from P33.1 billion.

FDC said that its banking and financial service business more than doubled its net income to P3.18 billion primarily through sustained lending momentum.

Filinvest Land saw a 15% increase in attributable net income to P1.39 billion after its revenues rose by 8% to P9.92 billion as its residential and rental business segments posted growth.

Its residential revenues grew 4% to P6.06 billion on the back of faster construction progress and the strong performance of its housing projects.

Reservation sales likewise rose by 21% to P11 billion. It launched P4.56 billion worth of residential projects in Rizal, Laguna, Davao, Pangasinan, South Cotabato, and Zamboanga.

Its mall business saw a 64% growth to P1.15 billion, while office revenues went up by 1% to P2.29 billion.

The company’s power unit went up by 3.9% for the first semester to P1.11 billion from 1.07 billion the prior year. Its revenues rose by 24.5% P7.32 billion from P1.44 billion due to power rate hikes.

Profit for FDC’s hospitality segment surged by 84%, while its revenues increased by 61.4% to P1.37 billion due to improvements in occupancy, room rates, and average food and beverage revenues. — Adrian H. Halili