THE combined net profits of publicly listed companies in the first three months of the year improved by 13.9 percent to P158.28 billion from P138.96 billion a year earlier on the back of profit gains in the Property and Services sectors.
In a statement, the Philippine Stock Exchange (PSE) said the consolidated revenues of listed companies inched up by 1.6 percent to P1.58 trillion from P1.55 trillion.
“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 and Chief Executive Officer Hans Sicat said.
Five of the six sectors posted net income growths during the January to March period, led by Property companies, which surged by 52.4 percent to P27.42 billion.
In terms of revenues, four out of the six sectors posted positive sales, led again by the Property Sector – up 22.4 percent.
Sales and profit mostly came from higher real estate and leasing sales, as well as a nonrecurring share sale gain by one property firm.
The Services sector, on the other hand, was boosted by gains from airline and telecommunications firms. The sector’s consolidated profits totaled P25.57 billion, a 27.9 percent increase.
The Financial sector was mainly driven by securities trading – increasing by 7.7 percent year-on-year – while consolidated net income in holding firms went up by 6.5 percent to P43.65 billion.
Net income in the Mining and Oil sector inched up by 2.9 percent to P2.97 billion on the back of favorable prices of precious metals in the global market, higher sales of nickel, and foreign exchange gains.
On the other hand, the Industrial sector was down with profits declining by 1.5 percent to P30.84 billion due to the negative impact of lower oil prices and higher operating expenses.
The top 30 firms under the benchmark PSE index accounted for 70.4 percent of the total net income of listed companies, posting a combined profit of P111.41 trillion or 9.2 percent higher from a year earlier.
In 2014, the combined net income of listed firms resulted in a “banner year” where profits reached P582.5 billion, up 8.3¬percent from P538.06 billion in 2013.