Phinma Corp. saw its net income leap by 64 percent to P287.4 million from P175.1 million on the back of the strong performance of its education subsidiary.
In a disclosure to the stock exchange on Friday, Phinma said the income growth was mostly due to the improvements and substantial acquisitions made by its education arm Phinma Education Holdings Inc.
Revenues increased by 4 percent to P4.2 billion from P4 billion.
“Enrollment in Phinma Education schools rose to 51,880 students for school-year 2015 to 2016 from 37,044 students the previous year. The increase is due to the acquisition of Southwestern University (SWU) in April 2015 and a 14 percent growth in enrollment of Araullo University, Cagayan de Oro College, University of Pangasinan, and University of Iloilo,” Phinma said.
Phinma Education saw its net income advance by 94 percent to P254.1 million. Revenues increased by 25 percent to P1.09 billion.
For its non-school business, Union Galvasteel Corp. reported a net income up by 17
percent to P128 million despite a revenue slip at P2.751 billion from P2.765 billion.
The combined revenues of subsidiaries Fuld & Company (Fuld US) and Fuld Philippines, however, declined by 17 percent to P295 million due to weak sales from the US group which led to a combined net loss of P23.1 million.
The combined equity earnings from affiliates Phinma Property Holdings Corp. and Trans-Asia Oil and Energy Development Corp. increased to P118 million from P10 million.
“The increase is in large part due to the start of commercial operations of South Luzon Thermal Energy Corporation’s first 135 megawatt coal fired power plant in the second quarter of 2015,” Phinma said.
Phinma said it will transfer and consolidate its shareholdings in Southwestern University (SWU) to education subsidiary Phinma Education.
In the same disclosure, parent conglomerate Phinma noted its board of directors approved “the sale of the corporation’s 21,331 SWU shares to Phinma Education Holdings Inc. for P2.54 billion.”
The group holds a total of 67.45 percent controlling stake in SWU. Phinma plans to expand the SWU campus, as well as gain from its Sacred Heart Hospital and the potential sale of its 240-hectare land in Cebu.
The group plans to set up two to three colleges in Southeast Asia, mainly in Myanmar, Vietnam, and Indonesia, before its planned initial public offering (IPO) in 2017.