The 4th-quarter core net profits of DMCI Holdings, Inc. (DMC) on Thursday fell 34% to P2,1 billion as the loading steps hit the construction industry last year.
The Consunji-led holding company reported in a press release that consolidating quarterly profits had increased to P1,9 billion by 59%, although the loss was “a one off loss of goodwill impairment.”
DMCI President and CEO of DMCI Holdings, Isidro A. Consunji, said: “The Neighborhood Quarantees affected our building competitiveness, although poor market conditions pulled much of our businesses’ sales efficiency.
“DMCI Mining was willing, under the Indonesian export ban, to overcome the downward trend due to high nickel demand from China. The market amount of DMCI Power increased but sales decreased due to the large base impact on the Aborlan plant due to the retroactive tariff change in 2019,” added Consunji.
Consolidated net revenues for the full year 2020 plummeted by 44 percent to P5,9 billion. This is primarily attributable to stringent limitations on quarantine and the pandemic’s economic effect.
The core revenue fell last year by 47 per cent to P6.6 billion with the exception of the non-recurring products. This amount precludes non-recurring losses of P1,9 billion, mostly from one-time charges of non-cash goodwill for its mining properties in Zambales in 2019 and from a revenue cancelation of P708 million in 2020.
After a slump in coal sales as well as prices for coal and energy, Semirara Mining and Power Corp. saw the core revenue contribution to P2 billion fall by 55%.
The contribution to revenue from DMCI Homes has fallen by 36% to P1,9 billion, attributable to the suspension of non-essential function during the first year. Building was halved and sales and unit turnovers were reduced. In addition to the decrease in revenue, higher building costs.
In addition to a 13% drop in revenue of Maynilad Water Services, Inc., the depreciation and amortization is up 13 percent.
In the absence of a single retrospectivity adaptation in its industry non-fuel tariff, DMCI Power’s revenues amounted to P611 million, a 12% decline.
Instead, after an increase in nickel exports and average sale rates, DMCI Mining’s income share rose from 165 percent to P483 million.
P109 million was contributed to D.M. Consunji, Inc., down by 88 percent because of lower production in manufacturing and pandemic achievements.