Listed firms post 17.8% profit growth
The combined net profit of Philippine publicly-listed companies grew by 17.8 percent last year to a record of P683.3 billion, riding on the country’s strong macroeconomic growth especially during the national election year.
The amount recorded in 2016 was the highest consolidated net income of listed companies since the PSE started tracking the cumulative profit of these companies, the Philippine Stock Exchange (PSE) reported.
“We are hopeful that the profitability shown by listed companies in 2016 will be sustained through 2017. We believe that the growth story of the country is very much intact and this should continue to attract investors into our stock market,” PSE president and chief executive officer Ramon Monzon said.
As of the end of 2016, there are 265 companies listed on the local bourse.
Counting only the combined profits of 30 companies under the Philippine Stock Exchange index, the cumulative net profit rose by 12.1 percent to P472.93 billion. These 30 biggest and most liquid companies comprising the local stock barometer accounted for 69.2 percent of the total market’s net profit.
Overall, the PSE attributed the increase in cumulative profits of listed firms to a new high last year to better performance of business segments and lower operating costs.
Meantime, consolidated revenue rose by 6.6 percent to P7.29 trillion from P6.84 trillion in the previous year.
All sectors also posted higher net profits last year, led by the services sector which grew cumulative profit by 34.7 percent to P93.6 billion last year on robust revenues from its constituent companies.
Despite a challenging regulatory environment under then Environment Secretary Gina Lopez, the aggregate net income of mining and oil firms rose by 21.7 percent to P13.91 billion on higher revenues and better gold prices.
Companies in the industrial sector saw a 19.9 percent increase in cumulative net income to P156.93 billion, mostly on lower operating expenses and improved sales.
The combined profit of holding firms, on the other hand, went up by 19 percent to P212.68 billion on higher income from various business units.
The consolidated net income of banks and other financial services companies came in at P114.38 billion, gaining by 12.3 percent from the previous year, on higher interest income.
The property sector registered a more modest cumulative net profit growth of 4.5 percent on higher real estate sales and rental income.
The cumulative growth of PSE-listed companies last year outpaced the country’s economic growth in the same year by about 2.6 times.
The Philippine domestic economy grew by 6.8 percent last year, accelerating from 5.9 percent in 2015, partly due to election-related spending. Private consumption, which accounted for nearly 70 percent of the economy, expanded by 6.9 percent last year.
