CPG’s consolidated revenues fell 26 percent due strict quarantine measures that dampened demand for its projects as well as slowed down collections and construction activities for its in-city vertical projects.
It incurred other expenses of P43.7 million during the period , a reversal of the P32.34 million other income reported a year ago.
The company’s affordable housing business through Phirst Park Homes, a joint venture with Japan’s Mitsubishi Corp., contributed P156 million or 76 percent of CPG’s total profit in the first quarter. This is 68 percent higher than the P93 million recorded in the same period last year.
“The management is very satisfied with the performance of its affordable housing business. It is precisely at these challenging times that we expect our diversification efforts in the prior years to help the company remain resilient. Our expansion to affordable housing business is delivering the results now, which was also supported by the good performance of leasing,” said CFO Ponciano Carreon Jr.
The office leasing business chipped in 30 percent of CPG’s total earnings compared to 27 percent from the same period a year ago.
Ponciano said the company remains unfazed by the lingering challenges in the sector as it is set to launch four new house and lot communities in northern and southern Luzon.
He said CPG’s goal is to keep a healthy balance sheet, boost liquidity and streamline operations to ride out the crisis.