Vol. XXI, No. 156 [ Business World Online ]
Monday, March 10, 2008 | MANILA, PHILIPPINES
GOTIANUN-LED Filinvest Development Corp. (FDC) earned P2.9 billion in profits last year, a 39% increase attributed to one-time gains from the follow-on offering of shares in property unit Filinvest Land, Inc.
Development’s P4 billion in net revenues
in 2007, amid a 22% growth in sales of
lots, condominiums, houses, and club shares.
Based on a preliminary financial report to the exchange, FDC said real estate operations contributed much to the total P4 billion in net revenues, amid a 22% growth in sales of lots, condominiums, houses and club membership shares.
But higher sales came from the residential sector, particularly the low-cost and affordable housing segments.
"Also contributing to the increased sales are new projects launched by Filinvest Land in the regional areas and [the] additional residential condominium of Filinvest Alabang, Inc.," FDC added.
Revenues coming from financial and banking operations, meanwhile, grew by 52% to P1.9 billion from P1.3 billion, mostly from interest income due to the increase in loans such as auto loans.
FDC owns EastWest Bank.
The company’s sugar operations, meanwhile, raked in P118.5 million. This came from Pacific Sugar Holdings Corp. and its sugar subsidiaries, from the time it was purchased on June 29 to Sept. 30.
FDC’s total consolidated assets as of end-December were valued at P114.7 billion. Stockholders’ equity stood at P58 billion.
Total liabilities for the year went up to P57.6 billion amid efforts to retire higher-cost and long-term debts through Filinvest Land’s follow-on offering.
Cash and cash equivalents ballooned to P14.8 billion, 71% higher than the December 2006 level due to additional loans obtained by the company and its real estate subsidiaries, proceeds from the rediscounting of receivables, and increase in the volume of deposits.
"Funds generated by the company and its real estate subsidiaries are intended to finance ongoing and future developments and for the investment opportunities," FDC said.
The Filinvest Group of Companies has allotted P22 billion in expenditures this year, of which P16 billion will go to FDC, Filinvest Alabang, Inc. and banking and sugar operations. Some P6 billion will be given to finance projects of Filinvest Land. — L. N. P. Lee
