Robinsons to double net profit in 5 years
Property developer Robinsons Land Corp. (RLC) seeks to double its net profit in the five years through 2019 by growing all businesses despite cutthroat competition.
Based on RLC’s net profit of P4.73 billion for the fiscal year ending in September 2014, the property firm may mean a goal of P9.46 billion by fiscal year 2019.
In an economic forum organized by the Economic Journalists Association of the Philippines (EJAP) and ING Bank, RLC president Frederick Go said that competition in the real estate sector has become “extremely tough,” as property firms come under increasing pressure to build recurring income.
For a company like RLC, whose portfolio of office, shopping malls and hotels contributed up to 85 percent in recurring earnings, Go said the challenge would be to sustain growth coming from an already large base.
This year, he said, RLC has earmarked at least P17 billion for capital spending.
“Every year, we have to build more of everything,” Go said, noting that RLC would strive to meet its goal of doubling net profit by 2019 by expanding all four segments—residential development, office, shopping mall and hotel businesses.
RLC is currently the biggest landlord in the Ortigas central business district. Another hub of RLC is Bridgetown Business Park in Quezon City.
What’s important to watch for in the next administration, Go said, will be a central bank governor as excellent as the current one, Bangko Sentral Governor Amando Tetangco Jr., and a Finance secretary who can maintain the sovereign investment grade rating.
Growth of the business process outsourcing (BPO) sector will likewise continue to be a major economic driver, Go said.
“It’s very critical that we sustain BPO growth. We have to ensure that the education sector continues to support the production of better graduates … to feed BPO growth,” he said. Doris Dumlao-Abadilla
