Listed firms’ net profit down 10% in 9 months

The combined net profit of the country’s publicly listed companies dropped 10.1 percent in the first nine months of the year compared with the cumulative level a year ago, reflecting the slower-than-expected domestic economic growth this year.

The Philippine Stock Exchange, in a recent study, reported that the cumulative net profit booked by listed companies declined to P308.86 billion from P343.59 billion a year ago. This was attributed mainly to lower net profits recorded by the industrial, services and holding firms.

But the PSE also reported that consolidated revenues of listed firms increased 15.4 percent to P2.78 trillion in the first nine months compared with a year ago, led by improved output by the financial, property and mining sectors.

The research was based on the nine-month financial statements filed by 235 out of 248 companies listed on the PSE.

“While it’s good to note that revenues of our listed firms continue to improve, their net incomes had to contend with the challenges in the economy such as rising production costs and lower-than-expected demand,” PSE president and chief executive Hans Sicat said in a statement.

“However, despite the uncertainties in the global landscape particularly in the eurozone and US, some key sectors have managed to post higher net income figures. This, together with the country’s sound fundamentals and exciting growth potential, continues to bolster interest in our listed companies,” Sicat added. “This confidence has been reflected in the PSEi, which continues to be a top performer in Asia this year.”

In terms of sectors, the collective income chalked up by the financial sector rose 17.1 percent year on year to P53.09 billion during the nine-month period. The PSE noted the increase in net interest income posted by Metropolitan Bank and Trust Co. while adding that Banco de Oro Unibank and Union Bank of the Philippines also posted foreign exchange gains and higher incomes from service charges and fees.

The property sector booked a combined income of P31.08 billion, 19.4-percent higher than the level last year. A nonrecurring gain from the sale of investment in available-for-sale shares boosted Megaworld Corp.’s net income by 62.8 percent, the research noted. Increased revenues from real estate sales through improved sales volumes of both residential units and commercial lots likewise lifted the net incomes of Ayala Land Inc. and SM Development Corp. by 32.9 percent and 51 percent, respectively.

The mining and oil sector’s aggregate income also surged 162.8 percent to P21.25 billion, benefiting from improvements in average global metal prices. In particular, Philex Mining Corp.’s revenue from gold and copper grew 50.7 percent and 17.3 percent, respectively, leading to an overall income growth of 102.9 percent in the first nine months.