Megawide Construction Corp. said Tuesday that robust growth in its construction business helped it book a P269 million net profit last year, a sharp reversal from the P1.87 billion loss it recorded in 2022.
Construction revenue reached P18.1 billion, driving total revenue 26 percent higher to P18.6 billion. Improved land port operations and initial contribution from the real estate segment, which recorded revenue of P348 million and P149 million, respectively, contributed to group revenue.
“Based on our timelines, 2024 will continue to reflect increased completion and should translate to higher revenues based on the S-curve. In addition, our pre-cast and construction unit continued to build its external portfolio, helping boost performance from the construction segment,” said Edgar Saavedra, Megawide chairman and chief executive officer.
It said new projects signed in 2023 included Hotel 101 in Libis and Lumbangan Solar Power Plant, bringing total order book to P43.1 billion as of end last year. Supply contracts closed last year included horizontal infrastructure projects like the Candaba Viaduct, a portion of MRT-7, CP-104 of the Metro Manila Subway, and a data center – with a combined value of more than P2 billion.
The team also secured fresh “supply-and-build” contracts for pre-cast materials in three new locations of PhirstPark Homes. The landport business likewise showed improvement as foot traffic continued to increase, reaching a high of 200,000 during the peak of Holidays in December 2023 and averaged 117,000/daily by the end of the year.
The retail area remained busy, with average spending per passenger reaching P40/pax from less than P30/pax the previous year amid a growing passenger base. Office leasing, on the other hand, attracted more traditional tenants to fill up leasable spaces and comprised 57 percent of signed up tenants as of end-2023.
For real estate operations, PH1 World Developers, Inc. reported its initial contribution of P148 million, representing its share since the acquisition in July 2023. Take-up of ongoing and new projects reached P4.6 billion – representing 916 units – which is expected to translate to revenues moving forward.
“As our operations steadily deliver the results, we also need to manage the balance sheet and reduce our interest-bearing liabilities to ease the impact of interest expenses on our profitability. We are confident this two-pronged approach will help boost our margins and further improve our bottomline,“ Saavedra added.
