Listed firm Phinma Corp. reported a 31 percent year-on-year drop in net profit in the first half despite gains from its core businesses, citing lower investment income compared to last year.
Phinma said net income in the first half shrank to P127 million from P185 million in the same period last year while revenue inched up 7 percent to P2.7 billion.
“Despite higher income from the subsidiaries, consolidated income from operations decreased from P181 million to P154 million in the first half of 2014 mainly due to a decline in investment income and an increase in expenses of the parent company,” Phinma said in its quarterly report.
Consolidated cost and expenses went up 9 percent to P2.5 billion due to higher costs at subsidiaries and depreciation costs from school building improvements.
It said equity in net earnings from associates decreased from P83 million in the first half of 2013 to P44 million in the first half of 2014 due to a decline in the income contribution of affiliates Trans Asia Oil & Energy Corp. and Phinma Properties Holdings Corp.
Phinma was incorporated on March 12, 1957 and is engaged in investment holdings, manufacturing of galvanized and pre-painted iron sheets, business process outsourcing for animation services, education, real estate development, and real property investment, according to the company’s profile on the Philippine Stock Exchange website.
Its subsidiaries include Union Galvasteel Corp.; Phinma Education Network consisting of four schools namely Pamantasan ng Araullo (Araullo University), Inc., Cagayan de Oro College, Inc., University of Pangasinan, and University of Iloilo; as well as Fuld & Company, Inc.; Fuld & Company (Philippines), Inc.; One Animate Ltd.; and Asian Plaza, Inc.
Besides Phinma Property Holdings and Trans-Asia Oil & Energy, the firm’s associates include AB Capital and Investment Corp. (ABCIC) Property Holdings, Inc. and Asian Coal Corp.