CPG earnings fall 30% to P204.6 million

MANILA, Philippines — Earnings of Century Properties Group (CPG) fell 30 percent in the first quarter as sales and rentals thinned and construction activities slowed due to quarantine restrictions.

In a disclosure to the stock exchange yesterday, CPG said its net income slipped to P204.58 million in the three months to March from P290.28 million during the same stretch last year.

Revenue also declined by more than 26 percent to P2.07 billion, from P2.8 billion, as sales collection and expansion projects had to be moderated in view of the quarantine regulations in place.

CPG chief finance officer Ponciano Carreon Jr. said the firm would push on with its goal to widen its portfolio. He said similar efforts the company embarked on years prior to the pandemic allow it now to withstand the effects of the health crisis.

“The management is very satisfied with the performance of its affordable housing business. It is precisely at these challenging times that we expect our diversification efforts in the prior years to help the company remain resilient,” Carreon said.

“Our expansion to the affordable housing business is delivering the results now, which was also supported by the good performance of leasing,” he said.

Broken down, real estate sales in the first quarter fell by over 28 percent to P1.78 billion, from P2.49 billion during the same period last year.

Leasing revenues slid by roughly six percent to P189.46 million from P200.94 million, but it increased its contribution to CPG’s profits to 30 percent for the period.

CPG also reported PHirst Park Homes, its joint venture with Mitsubishi Corp., accounted for at least 76 percent, or P156 million, of the first quarter net income. As such, the affordable housing segment recorded a 68 percent jump in its share to the firm’s profits.

Likewise, Carreon said CPG adjusts the business depending on the uncertainties brought about by the pandemic to achieve efficiency in its operations. For the period, it brought down its costs and expenses by more than 30 percent to P1.17 billion from P1.68 billion.

For the rest of the year, the Jose E.B Antonio-owned developer plans to expand its offering to weather the effects of the health crisis.

In the affordable housing sector, CPG eyes to launch four new house and lot communities in the northern and southern areas of Luzon within the second half.