Profits of listed companies decline 7% in first half

THE combined net earnings of the listed firms declined by 7 percent to P219.66 billion in the year through June from P236.23 billion the year before as a result of costlier inputs, the Philippine Stock Exchange reported Thursday.

Still, their combined revenue grew 15.3 percent to P1.85 trillion from P1.60 trillion, the exchange said in a statement.

“Despite the modest growth in listed companies’ revenues for the period, net profits have decreased overall due to several factors including higher input prices, which may have led to increased expenses,” Stock Exchange president and chief executive Hans Sicat said.

“Consumer demand also seems to have slowed down as a result of these price pressures, along with the cautious sentiment over adverse developments in the global markets.”

The Industrial Sector posted the biggest decline in combined net income at 31.1 percent, and due largely to a higher base registered by some firms the previous year, which came from one-time gains such as that of First Philippine Holdings Corp.’s

Lower sales volumes and average selling prices also affected the net earnings of Energy Development Corp. and Aboitiz Power Corp. First Gen Corp., on the other hand, posted lower equity in the net earnings of its associates.

The Holdings Firms sector registered a 10.3-percent decline in consolidated net earnings, and mainly as a result of the lower net earnings of the associates or subsidiaries of companies such as Lopez Holdings Corp., JG Summit Holdings and Aboitiz Equity Ventures. –Jenniffer B. Austria, Manila Standard Today