Megawide Construction Corp. said Friday it recorded a net income of P562 million in the first nine months of 2024, a 69-percent increase from the previous year.
The performance was driven by higher consolidated revenues of P16.3 billion, complemented by lower costs and expense management. This resulted in a 126-percent growth in operating profit to P1.98 billion and an improvement in operating margin to 12 percent from 6 percent last year.
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) reached P3.65 billion, up 29 percent from the same period in 2023.
The construction segment delivered P15.5 billion and contributed 96 percent to consolidated revenues, benefiting from increased economic activities and the government’s infrastructure build-up.
“Strong macroeconomic growth, coupled with easing interest rates, supported business expansion and bodes well for construction. Additionally, we are benefiting from the government’s infrastructure development and renewable energy capacity build-up, which we hope to capitalize on moving forward,” said Megawide president and chief executive Edgar Saavedra.
The company secured eight new contracts during the period, totaling P8.91 billion, six of which were solar power plants for newly-listed affiliate Citicore Renewable Energy Corp. This brought the company’s order backlog to P42.6 billion as of end-September, representing two to three years of revenues.
The pre-cast and construction solutions (PCS) segment, the manufacturing side of the construction business, continued its momentum with significant growth in external sales. Revenues from PCS more than doubled to P2.80 billion from P1.10 billion last year, driven by robust external sales, which comprised 65 percent of its revenues from 35 percent previously.
“Our PCS business is an emerging segment for the Company. We are confident that the wide application of pre-cast products in infrastructure, residential, and commercial developments will be attractive growth areas for our PCS business and the Company overall,” Saavedra said.
Landport operations delivered revenues of P386 million and contributed 2 percent to consolidated revenues, primarily from rental of retail spaces at the terminal area, boosted by consistently increasing foot traffic and improvement in office leasing.
Occupancy in the terminal rose to 92 percent as of end-September, while occupancy at the office towers improved to 41 percent, leased to traditional tenants such as logistics hubs, government offices, transport services, and travel agencies.
Revenue from PH1 World Developers (PH1) steadily rose to P377 million from P36.5 million last year, contributing 2 percent to consolidated revenues.
This came from ongoing projects like My Enso Lofts, The Hive, Modan Lofts, One Lancaster Park and Northscapes San Jose del Monte, Bulacan.
As of end-September, total reservation sales booked by PH1 reached P11.8 billion, expected to translate into revenues over the next two years as construction progresses.
Unsold inventory worth P11.0 billion, excluding projects to be launched early next year, will provide a healthy stock of future sales and revenue, it said.
