PH listed firms grew Q1 net profit by 13.9%

PUBLICLY listed companies in the Philippines grew their net profit by an average of 13.9 percent in the first quarter, led by earnings chalked up by the property and services sectors.

The Philippine Stock Exchange reported on Thursday that in peso terms, aggregate earnings of all companies listed on the local bourse amounted to P158.28 billion in the first three months compared to P138.96 billion in the same period last year.

Companies in the local stock stock barometer PSE index accounted for 70.4 percent of the net income generated by the overall market. Its 30 constituent blue chips posted a combined profit of P111.41 billion in the first quarter, up by 9.2 percent from the same period a year ago.

On the other hand, the consolidated revenues of all listed firms for the January to March 2015 period were marginally higher by 1.6 percent to P1.58 trillion from P1.55 trillion in the same period last year.

“We are optimistic that listed companies will be able to sustain their solid profit growth throughout 2015. This strong performance by corporate Philippines will remain to be one of the main drivers of stock market growth,” PSE president Hans Sicat said in a press statement.

Five out of six sectors posted net income growths in the first quarter of 2015 led by the property sector, whose combined profits soared by 52.4 percent year-on-year to P27.42 billion. On a revenue basis, four of the six sectors recorded higher revenues, again led by the property sector with a 22.4 percent year-on-year increase.

The combined income of the property sector was boosted by higher revenues recognized from real estate sales and leasing income alongside non-recurring share sale gain for one property firm.

Significant profit growth from airline companies and telcos were the main contributors to the increase in consolidated profits of the services Sector, which rose by 27.9 percent year-on-year to P25.57 billion, the PSE said.

On the other hand, the PSE noted that securities trading gains were the main reason for the 7.7 percent year-on-year collective income increase of the financial sector.

Companies in the holding firms sector had a combined net profit of P43.65 billion, up by 6.5 percent year-on-year as most holding firm posted better performance.

The mining and oil sector eked out a 2.9 percent year-on-year increase in consolidated income to P2.97 billion arising mainly from better prices of precious metals in the global market, higher sales of nickel as well as foreign exchange gains.

Meanwhile, the combined profit of firms in the industrial sector was down by 1.5 percent year-on-year to P30.84 billion on lower oil prices and higher operating expenses.

The PSE said this positive first quarter 2015 result followed another banner year in 2014 where the combined net profit of listed companies had risen by 8.3 percent to P582.5 billion from P538.06 billion in 2013.