DMCI Holdings president Isidro Consunji
Consunji group-led DMCI Holdings saw a 27-percent drop in net profit last year to P10.5 billion on lower contribution from its coal mining and power business alongside one-off impairment charge on its Zambales mining assets.
Excluding the non-recurring loss of P1.9 billion in 2019, mostly coming from the non-cash goodwill impairment, DMCI’s core net income went down by 14 percent year-on-year to P12.4 billion.
For the fourth quarter alone, consolidated earnings plunged by 70 percent year-on-year to P1.2 billion, primarily due to a 47-percent reduction in earnings contribution from Semirara Mining and Power Corp. and a non-cash goodwill impairment charge of P1.6 billion for the Acoje mine assets of Zambales Diversified Metals Corp. (ZDMC) and Zambales Chromite Mining Co. (ZCMC).
Excluding non-recurring items, core net income of DMCI Holdings for the fourth quarter stood at P3.1 billion, down by 25 percent year-on-year.
“Market conditions and regulatory restrictions no longer support our original valuation of ZDMC and ZCMC so the board decided to write off the goodwill associated with these investments,” DMCI Holdings chair and president Isidro Consunji said in a press statement on Thursday.