DMCI ‘cautiously optimistic’ on 2024 prospects
MANILA, Philippines —Consunji-led conglomerate DMCI Holdings is “cautiously optimistic” for 2024 as headwinds facing the commodities business dampen prospects of easing inflation and interest rates.
“Slowing sales and manufacturing in China could keep a lid on commodity prices,” DMCI chair Isidro Consunji said in a statement.
“With less demand and activity, we expect prices to be somewhat lower than last year,” said Consunji, who also sits as company president and CEO.
Nevertheless, the economy could receive a boost as potentially lower interest rates would lower borrowing costs for businesses, encouraging further expansion.The company believes that the government’s handling of infrastructure projects also appears to be a positive factor.
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DMCI thinks that improved scheduling and payment processes for these projects are expected to hasten construction activities, a development that could have ripple effects across various sectors of the economy.
Also, the property business was seeing mixed results despite strong sales takeup in the Solmera Coast beachfront project in Batangas province.
Consunji said in an earlier interview that the projects are either doing very well or not. “There’s no in between.”
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Meanwhile, the company described its performance in 2023 as “fairly good” amid “market uncertainties, volatile prices and high interest rates.”
Consunji said that, overall, they expect the DMCI group to deliver “another resilient performance this year.”
DMCI’s net income from January to September last year slumped 28 percent to P20 billion on lower commodity prices.Its net income during the third quarter hit P4.1 billion, down 44 percent, due to lower contributions from Semirara Mining and Power Corp. and DMCI Mining.
