Megawide reports 1st 9-mos income of P562-M
Strong macro-economic growth, coupled with easing interest rates, were supportive of business expansion and bode well for construction.’ The company is also benefiting from the government’s infrastructure development and RE capacity build-up.
Megawide Construction Corporation, led by its President and CEO, Edgar Saavedra, said its financial improvements in the first nine months of 2024 have led to a 126 percent rise in operating profit to P1.98 billion doubling its operating margin to 12 percent from six percent last year. The construction segment generated P15.5 billion in revenues, contributing 96 percent to the consolidated total.
photograph courtesy of Megawide Construction Corp.
Megawide Construction Corp. has reported a P562 million income for the first nine months of the year, representing a 69 percent increase year-over-year, driven by a combination of higher consolidated revenues at P16.3 billion, cost efficiencies and expense management.
The company said on Friday that the financial improvements have led to a 126 percent rise in operating profit to P1.98 billion and doubled its operating margin to 12 percent from six percent last year.
Consolidated EBITDA also grew by 29 percent to P3.65 billion compared to the same period in 2023.
The construction segment generated P15.5 billion in revenues, contributing 96 percent to the consolidated total.
“Strong macro-economic growth, coupled with easing interest rates, were supportive of business expansion and bode well for construction,” Megawide president and CEO Edgar Saavedra said.
“In addition, we are also benefiting from the government’s infrastructure development and renewable energy capacity build-up, which we hope to capitalize on moving forward,” he added.
Contracts worth P8.91 billion
Megawide secured eight new contracts worth P8.91 billion during the period, including six solar power projects from newly-listed affiliate Citicore Renewable Energy Corp.
The order backlog reached P42.6 billion as of end-September, representing 2-3 years of revenues.
The precast and construction solutions (PCS) segment of the business saw substantial growth, with revenues more than doubling to P2.8 billion from P1.1 billion last year, driven largely by strong external sales, which rose to 65 percent of PCS revenues from 35 percent.
Landport operations contributed P386 million in revenues, or two percent of the consolidated total from a steady increase in daily foot traffic, averaging 136,000 visitors, and improved occupancy rates.
Terminal occupancy reached 92 percent by the end of September, while office towers, leased primarily to logistics hubs, government offices, transport services and travel agencies, reached 41 percent.
PHI World Developers revenue
Meanwhile, revenue from PH1 World Developers also rose to P377 million, up from P36.5 million the previous year, supported by ongoing projects such as My Enso Lofts, The Hive, Modan Lofts, One Lancaster Park and Northscapes in San Jose del Monte, Bulacan.
By end-September, PH1 had booked P11.8 billion worth of reservation sales which are expected to contribute to revenue over the next two years as construction accelerates.
Additionally, unsold inventory worth P11 billion, excluding projects set for launch next year, provides a solid pipeline for future sales and revenue.