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Thursday, March 28, 2024

Century Properties posted 36% profit decline in first half

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Property developer Century Properties Group Inc. said Tuesday net income attributable to its parent equity holder declined by 36.4 percent in the first half to P458.1 million from P720.5 million in the same period last year.

CPG said in a disclosure to the stock exchange revenues in the six-month period also went down by 25 percent to P4.52  billion from P6 billion.

First-half sales were boosted by sustained the growth of its horizontal affordable housing and commercial leasing businesses. This is consistent with the company’s strategy of balancing its asset portfolio with in-city vertical developments and diversifying revenue streams.

Horizontal affordable housing and commercial leasing businesses accounted for P1.27 billion or 28 percent of total revenues in the first six months, up from just 15 percent in the same period last year.

The combined net income from the two business segments also accounted for P225 million or 42 percent of the total first-half net income. This was higher than the 29-percent contribution in the same period last year.

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As a result of the increasing contributions from the two high-margin business segments, CPG’s gross profit margin improved to 40 percent from 38 percent a year earlier.

Operating expenses dropped 21 percent as the company continued to streamline operating and selling expenses.  

CPG chief finance officer and investor relations head Ponciano Carreon said the decline in revenues and net income was within the management’s expectations given the coronavirus pandemic.

“We are prepared for the unfavorable impact of the current situation on the company’s operating results, including the potential slowdown in sales and construction and development activities, and we have quickly put in place mitigating measures to build robust liquidity levels and a strong balance sheet even as preparations are ongoing to position the group for the new market and business opportunities,” Carreon said.

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