In the first half of the year, Gokongwei-led Robinsons Land Corp. (RLC) reported a net income of P3.7 billion. It was down 8 percent year-on-year.
In addition, it was because of the coronavirus (COVID19) pandemic and the consequent lockout protocols. It happened in the second quarter took a heavy toll on mall operations.
Coming from a net profit of P3.16 billion in the first quarter, the latest report implied a second-quarter net profit of P540 million.
It marked a decline of around 75 percent from the previous year’s reported level.
RLC President and chief executive officer, Frederick Go, said in a statement.
“Even with the full impact of the quarantine in the second quarter, all our business units managed to be EBITDA (earnings before interest, taxes, depreciation, and amortization – a measure of cash flow)-positive. Moving forward, the improving trend gives us optimism that the economy is on its way to recovery. We continue to seek opportunities. And also, there are innovative new ways of doing business to deliver long-term sustainable value to all our stakeholders.”
Consolidated Sales of RLC Increased
Consolidated sales of RLC increased slightly by 3 percent year-on-year to P15.4 billion for the first six months, while total cash flow as calculated by EBITDA decreased year-on-year to P8.2 billion by 1 percent.
The full impact of the pandemic was felt during the second quarter of the year. In other words, it substantially affected RLC’s business units.
The investment portfolio – which produces recurring income and accounts for 49 percent of consolidated revenue – saw revenue decline to P7.5 billion by 25 percent year-on-year.
On the other hand, due to this new residential accounting procedure, the construction portfolio managed to raise sales by 59 percent year-on-year. Furthermore, it pushes to P7.9 billion in the first half.
Starting January 2020, RLC acknowledged residential construction sales from the previous 15 years. Further, it was based on a 10 percent equity requirement for a buyer.
Without the adjustment, residential revenues would have gone down by 51 percent in the first semester. Instead, the residential division recorded P7.9 billion revenues in the first half, 66 percent higher year-on-year.