Sia-listed companies post double-digit earnings growth

By Justine Irish D. Tabile

THREE listed companies chaired by businessman Edgar J. Sia II reported double-digit first-half profit growth on Monday, led by its retail store operator MerryMart Consumer Corp., which nearly doubled its profits during the period.

Real estate company DoubleDragon Corp. recorded a 29% increase in its consolidated net profit to 1.2 billion pesos for the six months ended in June, as revenue rose 26.8% to 3.41 billion pesos.

In a press release, Mr. Sia said the company’s equity “which generally consists of a series of diversified titled sustainable real estate assets located in prime and strategic locations nationwide continues to appreciate in over the years”.

Its consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 32% to reach 2.07 billion pesos.

To date, the company has 1.2 million square meters of completed gross floor area nationwide.

“We expect this portfolio of sustainable assets to mature and generate the optimal level of recurring revenue generation before 2025,” Mr. Sia said.

The company is preparing for the planned real estate investment trust listing of its CentralHub industrial warehouse portfolio, which will begin once market conditions improve.

In the last quarter of the year, DoubleDragon plans to build Hotel 101 – Niseko in Hokkaido, Japan.

“We believe DoubleDragon’s current overall healthy financial position during this prolonged economic crisis positions it well to grow and strengthen even more significantly once the next boom cycle begins,” said Hannah Yulo-Luccini. , chief investment officer of DoubleDragon.

Meanwhile, DDMP REIT, Inc. reported core net income of 1.06 billion pesos in the first six months, up 17% from a year ago.

Its income increased by 2.9% to reach 1.23 billion pesos while its rental income increased by 7.6% to reach 1.14 billion pesos in the first half.

DDMP, which invests in income-generating real estate, ended the semester with total assets and equity up 0.2% to 50.30 billion pesos and 41.04 billion pesos, respectively.

Its Board of Directors has approved a cash dividend to all shareholders in the amount of Pula 486.7 million or Pula 0.03 per share with the payment date September 26, 2022.

“We are pleased with the many positive economic indicators recently signaling a new economic cycle following the COVID-19 (coronavirus disease 2019) pandemic, following the peak of wartime tensions in Ukraine and following the generally peaceful Philippine elections. In recent weeks, we have felt the backlog of new inquiries about new tenants, ongoing negotiations, and increased activity from existing office and retail tenants,” Mr. Sia said.

MerryMart, which has multiple retail formats, posted a net profit of 32.25 million pesos in the first half, nearly double from a year ago, thanks to its acquisitions of Carlos SuperDrug and Cecile’s Pharmacy .

The group is keeping its eyes peeled for similar partnerships and acquisitions in both traditional and tech consumer sectors.

MerryMart’s revenue increased by 55.9% to 2.88 billion pesos during the six-month period, while its EBITDA soared to 99.45 million pesos, an increase of 62.5% compared to compared to last year.

Mr Sia said the company “is on track to surpass the $5 billion revenue mark this year, more than double the company’s revenue figures two years ago when it asked [an initial public offering].”

He said the “immediate next goal” for the retail group is to double the figure “to reach our next goal”, which he revealed as hitting the $12 billion revenue mark.

The company is about to launch an app called “MM Wholesale App” which will be available on iOS and Android devices.

The app will offer next day delivery in Metro Manila, Bulacan, Rizal, Laguna and Cavite as well as free delivery for purchases of P10,000 or more. It will have a system points that customers can use “good as cash” on their next purchase.

“One of the main features of the app is its live inventory capability. Everything you see in the app is physically in our warehouse, which means 99% of the time you will receive exactly what you ordered,” Mr. Sia said.

The app will offer more than 5,000 household essential SKUs (stock keeping units) at 15% less than retail prices.

By 2030, MerryMart aims to have a total of 1,200 branches nationwide and generate 120 billion pesos in recurring sales revenue system-wide.

Trading on Monday, DoubleDragon shares were down 1.05% or P0.08 to P7.51 each, DDMP shares were up 1.99% or P0.33 to P1.54 each, and MerryMart rose 6 .21% or P0. 06 to P1.54 each.