A BROWN Co., Inc. reported a 5.8% drop in third-quarter net profit to P82.85 million despite double-digit growth in its revenue for the period.
In a disclosure to the stock exchange, the Cagayan de Oro City-based real estate developer and dealer in agricultural products said revenue during the quarter hit P333.07 million, up 33.6% from a year earlier.
In a review of its quarterly operations, the company said it had sold 11 socialized, 20 economic and 78 high-end units or a total of 109 lots, and house and lot units.
A Brown also said crude palm oil sales were up 91% or P7.9 million during the quarter and 486% or P49.1 million at the end of September “due to the increase in quantity processed and sold.”
The company said sales by its water services business rose by 20%, while those of palm olein fell 77%. Also down were sales of kernel nuts and fertilizer, palm acid oil, palm stearin, and palm fatty acid distillate.
Costs and expenses during the period grew at around the same pace at P32.7% to P227.60 million from P171.56 million.
In the nine months to September, net profit fell 7.3% to P256.91 million.
Revenue during the nine months rose 34.4% to P913.33 million. This was widely outpaced by the 49.3% rise in cost and expenses to P631.51 million.
A Brown’s real estate development projects are in Cagayan de Oro City and Initao in Misamis Oriental; Cainta, Rizal; and Valencia City, Bukidnon; and Butuan City, Agusan del Norte.
The company also has ventures in oil palm nursery and seedlings distribution, palm oil milling, operation of hotels, real estate brokerage, power generation, and investment in gold mining assets.
On Friday, A Brown rose 2.67% to P0.77. — Victor V. Saulon
