A BROWN Co., Inc. recorded a 68% higher net income for the third quarter of 2021 compared with that in the same quarter last year despite a 23% decline in revenues in the same period.
The listed firm’s net income from July to September 2021 reached P142.18 million from P84.61 million year on year, the company said in a disclosure to the Philippine Stock Exchange (PSE) on Wednesday.
In a disclosure on Nov. 18, however, A Brown reported topline revenues for the third quarter of 2021 stood at P206.15 million, down by 23% from P270.70 million in the same quarter last year.
For the nine-month period ending in September, A Brown’s consolidated revenues were down by 17.2% to P495.53 million from P598.44 million in the first nine months of 2020.
Nonetheless, the company still recorded a 23% growth in its net income for the three quarters to P368.04 million from P298.24 million in the same period last year.
“Higher margins in the real estate segment due to lower development costs for corresponding units sold contributed to the higher net income,” the listed firm said.
It added that its “real estate sales delivered 89% of the consolidated revenues.”
A Brown’s real estate sales dropped by 24% to P181.11 million in July to September 2021 from P240.20 million year on year due to the lower percentage of completion of units sold.
Its sales of agricultural goods also went down by 25% to P18.43 million from P24.68 in the same quarter year on year because of “lower sales of crude palm oil, palm stearin, and palm fatty acid distillate.”
Meanwhile, the firm’s income for water services grew by 13% in the third quarter of 2021 to P6.60 million from P5.82 million in the same quarter last year brought about by an increase in water connections “due to additional buyers moving in to their units.”
A Brown is primarily engaged in real estate development in Northern Mindanao and in Rizal. It also has investments in power generation through affiliates Palm Concepcion Power Corp. and Peakpower Energy, Inc.
The company also reported that one of its fully owned subsidiaries, Vires Energy Corp. (VEC), has completed the pre-front end engineering design study for the marine and onshore scope of the natural-gas fired power plant and liquefied natural gas terminal it is developing in Batangas City.
The 500-megawatt project is set to become the country’s largest floating power plant and is expected to open for commercial operations in January 2023. — Bianca Angelica D. Añag
