First-Home business segment buoys 10% revenue growth
Century Properties Group Inc. (PSE: CPG) maintained a solid performance in the first nine months of 2023 (9M 2023) as it recorded consolidated revenues at P9.7 billion, up 10% from P8.7 billion in the same period last year (9M 2022).
The higher revenues for 9M 2023 were anchored on the steady rise in the contribution of PHirst Park Homes, CPG’s First-Home segment amounting to P5.3 billion or 55% of total revenues, an increase of 28% from P4.2 billion in 9M 2022. CPG’s In-City Vertical Developments and Commercial Leasing segments contributed 30% or P2.9 billion and 10% or P1 billion, respectively. The remainder came from its Property Management segment which contributed P376 million.
“The economic recovery of the country and growing demand of Filipinos for quality and affordable first homes translated into a strong sales take-up for PHirst, CPG’s first-home platform and has put CPG on track to surpass its pre-pandemic performance despite the persisting headwinds,” explained Ponciano S. Carreon, Jr., Chief Finance Officer of CPG.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for 9M 2023 surged by 30% to P2.5 billion from P1.9 billion in the same period last year as a result of the higher contribution from the high-margin First-Home segment and improved operating efficiencies of the other business segments. The company also posted a healthy gross profit margin for 9M 2023 of 45%, higher than 41% in 9M 2022.
CPG’s net income after tax for 9M 2023 reached P1.3 billion, a 13% growth from P1.1 billion in 9M 2022.
“We remain resolutely dedicated to our role in nation-building, diligently addressing the aspirations of Filipinos for high-quality, affordable, and strategically positioned homes. As we forge ahead, we will intensify our business efforts to meet the soaring demand in this sector, driven by the unmet housing backlog in our nation,” stated Marco R. Antonio, President and CEO of CPG.
CPG previously announced its board approval to acquire Mitsubishi Corporation’s stake in PHirst Park Homes, Inc., paving the way for the company to gain full ownership. The planned acquisition has already received the green light from the Philippine Competition Commission in August.
