Property sector slowdown slashes CPG Q1 income by 39.5%
Antonio family-led property developer Century Properties Group (CPG) booked P141.89 million in first quarter attributable net profit, down by 39.5 percent year-on-year due to the slowdown in real estate development and leasing revenues.
Including earnings attributable to noncontrolling interest, CPG’s comprehensive income amounted to P204.59 million, 29.5 percent lower from the same period last year, based on the company’s regulatory filing.
CPG posted consolidated revenues of P2 billion, down by 26 percent from last year due to the impact of government restrictions amid a prolonged COVID-19 pandemic. The multiple lockdowns caused a slowdown in sales, collections and construction activities for the company’s in-city vertical projects.
First quarter real estate sales revenues fell by 28.5 percent year-on-year to P1.79 billion, while leasing revenues also declined by 5.7 percent year-on-year to P189.46 million.
Property management fees, however, increased by 6.5 percent year-on-year to P93.11 million.
But CPG had been quick to institute measures to cushion the negative impact of the pandemic, said chief financial officer Ponciano Carreon Jr. This is by prioritizing business efforts and funding areas that will drive resiliency and benefit the group overall, he added.
The company also imposed belt-tightening measures. Operating expenses declined by 22 percent year-on-year to P165 million from the same period last year. The focus of CPG remains on “keeping a healthy balance sheet, increasing liquidity and comprehensive debt management,” the disclosure said.
CPG’s affordable housing business through PHirst Park Homes, a joint venture with Mitsubishi Corp., contributed P156 million or 76 percent of CPG’s total profit in the first quarter. This segment delivered a 68-percent increase in earnings contribution compared to last year.
