After defying the earnings slump caused by the pandemic, Phinma conglomerate plans to raise at least P2 billion from a bond offering this year to fund expansion of high-impact core businesses.
This was announced by company president and CEO Ramon del Rosario Jr. during the recent annual stockholders meeting of Phinma Corp.
Proceeds from the proposed bond offering are largely intended for investments that will “accelerate growth in strategic business units where Phinma has a competitive advantage and where it can make a significant social impact,” according to Del Rosario.
He took note of promising developments for economic recovery and growth this year, including the nationwide vaccine rollout, lifeline measures in the Bayanihan 3 bill and the passage of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) tax reform law.
“These programs will be good for our nation and for our businesses that are strategically positioned to enable the growth of the Philippines,” he said.
Bucking the overall corporate earnings downturn last year, Phinma’s consolidated net income amounted to P522 million, an increase from P437 million in 2019.
Consolidated revenues rose by 8 percent to P12.3 billion due to record revenues delivered by its construction materials group, which has attributed it to the efficient operation of a new Mariveles cement facility and higher market acceptance of its steel and cement products.
The construction materials group, composed of Philcement Corp., Union Galvasteel Corp. and Phinma Solar Energy Corp., hit record revenues of P10.1 billion and combined net income of P917 million in 2020.
“Despite the decline in the construction industry during the pandemic, the industry is poised for a recovery over the next few years, and we view the construction sector as one of the key drivers of the country’s growth and economic recovery,” Del Rosario said.
Phinma Education Holdings Inc., a growing network of tertiary institutions, piloted two remote learning models Flex Learning and Remote and Distance Learning to respond to the needs of different sectors. Enrollment reached 71,659 students in the first semester, equivalent to 97 percent of the previous school year.
Phinma Education acquired Rizal College of Laguna in August last year, its eighth school in the Philippines and the first in a planned Laguna network.
—Doris Dumlao-Abadilla