Megawide profit up 24% on stronger operations - BusinessWorld Online

MEGAWIDE.COM.PH MEGAWIDE Construction Corp.posted a 24% increase in first-quarter (Q1) attributable net income to P265.35 million, driven by strong results from its real estate operations and sustained performance from its construction segment.

“Our results in the first three months are consistent with our back-ended target for the year.While we sustained a healthy performance early on, we have yet to quantify the impact of the Middle East war and a newly replenished construction order book in the coming months,” Megawide Chairman and Chief Executive Officer Edgar B.

Saavedra said in a media release on Thursday.For the January-to-March period, the listed engineering and construction company posted gross revenue of P5.04 billion, up 16.4% from P4.33 billion a year earlier.

Megawide said revenues from operations accounted for 95.44% of total revenue at P4.81 billion.Construction operations contributed P3.84 billion, while landport and real estate operations generated P137.86 million and P831.13 million, respectively.

“Overall, the revenue growth reflects increased project activity and portfolio expansion, with the real estate segment providing a higher contribution during the period.However, revenues remain partially influenced by project timing and recognition cycles, particularly for construction and real estate operations,” the company said. Total expenses rose 15.59% to P4.67 billion from P4.04 billion previously.

Megawide said the impact of the Middle East war, which escalated in February, has yet to materialize.The company added that it continues to explore strategies to strengthen revenue growth and its balance sheet.

“The other side of our value creation strategy is boosting our financial position to ease the debt-servicing burden and provide financial flexibility.Already, we have pared down almost P6 billion of our short-term debt in the first quarter alone, which should translate to estimated in...