DMCI HOLDINGS, INC. Q4/FY 2023 Analysts' Briefing
07 March 2024
Makati City, Philippines via remote communication
2023: Historic Results on Operational Efficiency
Dividend Payout
- DMC
- SCC
Second-Highest Net Income
- DMC
- SMPC
Net Income
- DMCI Power
- SMPC Power Segment
- Maynilad
Second-Highest Revenues
- DMC
- SMPC
Generation / Production
§ SMPC | § ZDMC |
- DMCI Power Highest Cash Balance
Sales
- SMPC § DMCI Power
- SCPC § ZDMC
§ DMC | § DMCI |
CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MINING • MAYNILAD • SUMMARY • OUTLOOK | 2 |
Stronger performances in the "new normal"
In Php mn | Q4 2023 | Q4 2022 | Change |
SMPC (56.65%) | 2,976 | 2,281 | 30% |
DMCI Homes | 712 | 616 | 16% |
Maynilad (25%) | 412 | 359 | 15% |
DMCI Power | 327 | 193 | 69% |
D.M. Consunji, Inc. | 114 | (89) | 228% |
DMCI Mining | 86 | 198 | -57% |
Parent and others | 4 | (1) | 500% |
Core net income | 4,631 | 3,557 | 30% |
Nonrecurring items | 73 | (95) | 177% |
Reported net income | 4,704 | 3,462 | 36% |
CONTRIBUTION HIGHLIGHTS
- Bottom line expanded as most businesses delivered double-digit growth
- Best Q4 contribution from DMCI Power; DMCI ends back-to-back years of Q4 losses
- SMPC, DMCI Homes and Maynilad contributed 88% of core net income
- Nonrecurring items largely pertain to DMCI Homes gain from land sale to joint venture company (2023) and share in SMPC write-down of gas turbines based on final selling price (2022 and 2023)
CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MINING • MAYNILAD • SUMMARY • OUTLOOK | 3 |
Second-best earnings on utilities boost
In Php mn | 2023 | 2022 | Change |
SMPC (56.65%) | 15,780 | 22,661 | -30% |
DMCI Homes | 4.569 | 4,469 | 2% |
Maynilad (25%) | 2,090 | 1,467 | 42% |
DMCI Power | 959 | 742 | 29% |
DMCI Mining | 655 | 1,285 | -49% |
D.M. Consunji, Inc. | 573 | 587 | -2% |
Parent and others | 51 | (28) | 281% |
Core net income | 24,677 | 31,183 | -21% |
Nonrecurring items | 46 | (93) | 149% |
Reported net income | 24,722 | 31,090 | -20% |
CONTRIBUTION HIGHLIGHTS
- Second-highestearnings ever; more than double (134%) pre-pandemic (2019) earnings of Php 10.5 bn
- Earnings drop on normalizing commodity and energy markets; ROE (23.4%) highest* among listed conglomerate peers
- SMPC, DMCI Homes and Maynilad accounted for 91% of core net income
- Maynilad and DMCI Power contributions up double digits; Best-ever from DMCI Power
- Nonrecurring items include DMCI Homes gain from land sale (2023), share in write-down of SMPC turbines (2022 and 2023) and Maynilad expenses (2022 and 2023)
*based on consensus estimates
CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MINING • MAYNILAD • SUMMARY • OUTLOOK | 4 |
Q4 results nearly match 2021 record high
In Php mn | Q4 2023 |
SMPC (56.65%) | 2,976 |
DMCI Homes | 712 |
Maynilad (25%) | 412 |
DMCI Power | 327 |
D.M. Consunji, Inc. | 114 |
DMCI Mining | 86 |
Parent and others | 4 |
Core net income | 4,631 |
Nonrecurring items | 73 |
Reported net income | 4,704 |
2021
Q4 2021 | Change |
3,286 | -9% |
1,172 | -39% |
435 | -5% |
153 | 114% |
(208) | 45% |
223 | -61% |
(4) | 100% |
5,057 | -8% |
(136) | 46% |
4,921 | -4% |
Q/Q
Q3 2023 | Change |
1,925 | 55% |
1,366 | -48% |
605 | -32% |
267 | 22% |
47 | 143% |
(154) | 156% |
38 | -89% |
4,094 | 13% |
(9) | 911% |
4,085 | 15% |
Pre-pandemic
Q4 2019 | Change |
1,065 | 179% |
1,219 | -42% |
192 | 115% |
270 | 21% |
242 | -53% |
95 | -9% |
38 | -89% |
3,121 | 48% |
(1,897) | 104% |
1,224 | 284% |
CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MINING • MAYNILAD • SUMMARY • OUTLOOK | 5 |
Lower selling prices, accomplishments temper growths
In Php mn | Q4 2023 | Q4 2022 | Change | 2023 | 2022 | Change | CONSOLIDATED HIGHLIGHTS | |||||
§ Q4 revenues up on increased coal and on-grid | ||||||||||||
Revenues | 30,434 | 28,299 | 8% | 122,829 | 142,600 | -14% | ||||||
power sales volume; FY dropped on lower | ||||||||||||
Cost of sales | 15,200 | 14,456 | 5% | 59,050 | 61,289 | -4% | ||||||
commodity prices and construction | ||||||||||||
Core EBITDA | 8,704 | 8,383 | 4% | 43,588 | 56,708 | -23% | ||||||
accomplishments | ||||||||||||
Core net income | 4,631 | 3,557 | 35% | 24,677 | 31,183 | -21% | § Less volatile COS on higher shipments (coal | |||||
Nonrecurring items | (73) | 94 | -177% | (46) | 93 | -149% | ||||||
and nickel) and power sales (on and off-grid) | ||||||||||||
Reported net income | 4,704 | 3,462 | 36% | 24,722 | 31,090 | -20% | § Q4 net finance income grew fourfold from | |||||
In Php mn | Dec 2023 | Dec 2022 | Change | |||||||||
Php 59 mn to Php 282 mn; FY reversed from | ||||||||||||
Php 252 mn net costs to Php 1.0 bn income | ||||||||||||
Debt* | 49.5 | 52.6 | -6% | |||||||||
due to higher interest rates, loan payback and | ||||||||||||
Short-term | 1.5 | 1.1 | 36% | |||||||||
real estate in-house financing income | ||||||||||||
Long-term | 47.9 | 51.4 | -7% | |||||||||
Ending cash balance | 32.2 | 28.4 | 13% | § 97% of total debt are long-term; 80% have | ||||||||
*rounding may cause total not to match the sum of parts | fixed rates | |||||||||||
NOTE: See slide 25 for Debt Profile | ||||||||||||
CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MINING • MAYNILAD • SUMMARY • OUTLOOK | 6 |
In Php mn | Dec 2023 | Dec 2022 | Change |
Cash and cash equivalents | 32,158 | 28,408 | 13% |
Receivables and contract asset | 53,409 | 56,148 | -5% |
Inventories | 67,902 | 61,525 | 10% |
Investments in associates | 19,092 | 18,195 | 5% |
Fixed assets | 54,266 | 58,131 | -7% |
Others | 21,169 | 18,353 | 15% |
Total Assets | 247,995 | 240,760 | 3% |
Accounts and other payables | 30,496 | 28,377 | 7% |
Contract liabilities | 19,351 | 15,919 | 22% |
Loans payable | 49,469 | 52,558 | -6% |
Others | 11,242 | 11,236 | 0% |
Total Liabilities | 110,558 | 108,090 | 2% |
Total Equity | 137,437 | 132,670 | 4% |
Total Liabilities and Equity | 247,995 | 240,760 | 3% |
Current Ratio | 277% | 290% | |
Quick ratio | 99% | 111% | |
Net debt/Equity | 13% | 18% | |
BVPS | 8.21 | 7.79 | 5% |
KEY TAKEAWAYS
- Total assets rose following ATH cash balance and inventories from DMCI Homes (+ Php 5.4 bn); DMCI cash balance record high of Php 4.6 bn
- Contract assets and receivables declined on DMCI collection of pending claims
- Other assets increased double digits on higher creditable withholding taxes and additional DMCI Homes investment for its joint venture EDVI*
- Accounts and other payables went up due to timing for government share remittance; Loans payable dropped with SMPC, DPC and DMCI pare-down(-Php 4.7 bn), tempered by DMCI Homes net availment (+Php 1.6 bn)
- Financial position very healthy as liquidity, leverage and BVPS all improved, even after Php 19.2 bn in total dividend payout, the highest in history
- DMC Estate Development Ventures, Inc.
CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MINING • MAYNILAD • SUMMARY • OUTLOOK | 7 |
Lower revenues but better margins in Q4
In Php mn | Q4 2023 | Q4 2022 | Change | 2023 | 2022 | Change | ||||
Revenues | 3,652 | 4,168 | -12% | 16,509 | 19,499 | -15% | ||||
COS | 3,181 | 3,708 | -14% | 14,477 | 17,108 | -15% | ||||
OPEX | 100 | 161 | -38% | 441 | 514 | -14% | ||||
Core EBITDA | 371 | 298 | 25% | 1,590 | 1,877 | -15% | ||||
Core net income | 168 | 24 | 587% | 757 | 815 | -7% | ||||
Reported net income | 168 | 67 | 150% | 783 | 863 | -9% | ||||
Capex | 6 | 93 | 100% | 382 | 227 | 68% | ||||
In Php bn | Dec 2023 | Dec 2022 | Change | |||||||
Debt* | - | 0.2 | -100% | |||||||
Ending cash balance | 4.6 | 1.4 | 229% |
* Bank loans
KEY TAKEAWAYS
- Revenues and COS fell double digits due to reduced construction activity, near-completion of projects and fewer ongoing contracts
- Q4 OPEX down due to reduction in retirement expense following lower projection rate
- Q4 core EBITDA margin recovered from 7% to 10%; FY flat at 10% for both periods
- Net debt-to-equity ratio improved from -0.2 to -0.6 on debt-free status, receivable collections, and a major project down payment
- ATH cash balance on collected receivables, down payment and JV (Php 2.1 bn)
CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MINING • MAYNILAD • SUMMARY • OUTLOOK | 8 |
Joint ventures and project support step up
KEY TAKEAWAYS | |||||||||||||
Revenue Breakdown | Q4 2023 | Q4 2022 | Change | ||||||||||
In Php mn | |||||||||||||
§ Building Unit still top revenue source, accounted for | |||||||||||||
Building* | 2,122 | 2,534 | -16% | ||||||||||
58% and 61% in 2023 and 2022, respectively; Infra | |||||||||||||
Infrastructure | 184 | 1,429 | -87% | ||||||||||
revenues plunged on project scarcity | |||||||||||||
Joint Ventures (JV) and billables | 876 | (98) | -991% | ||||||||||
§ Strong JV rebound due to low base effect, following | |||||||||||||
Project Support and others | 470 | 304 | 55% | ||||||||||
re-scoping of North South Commuter Railway | |||||||||||||
Total Revenues | 3,652 | 4,168 | -12% | ||||||||||
contract package (CP) 01 last year | |||||||||||||
In Php bn | Sep 2023 | Q3 | Change | Booked | Dec 2023 | § JV projects accounted for 47% of order book; projects | |||||||
Awarded | Order | Revenues | |||||||||||
include SCRP** CP S02 (with Acciona Philippines), | |||||||||||||
Building* | 17.5 | 4.1 | 0.2 | 2.1 | 19.7 | ||||||||
MMSP*** CP102 (with Nishimatsu Construction) | |||||||||||||
Infrastructure | 2.1 | - | 0.4 | 0.2 | 2.2 | ||||||||
Joint Ventures | 20.8 | - | (0.3) | 0.7 | 19.9 | § Newly-awarded projects include St. Luke's Medical | |||||||
Total | 40.5 | 4.1 | 0.3 | 3.0 | 41.9 | Center (New Hospital Building) and pipelaying works | |||||||
*Formerly presented as Building, Utilities and Energy projects | in Muntinlupa | ||||||||||||
**South Commuter Railway Project | |||||||||||||
***Metro Manila Subway Project | |||||||||||||
NOTE: For FY Highlights, see page 53 | |||||||||||||
CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MINING • MAYNILAD • SUMMARY • OUTLOOK | 9 |
Slow pandemic sales, cancellations clip revenues
In Php mn | Q4 | Q4 | Change | 2023 | 2022 | Change | ||
2023 | 2022 | |||||||
Revenues | 4,057 | 4,093 | -1% | 19,246 | 21,922 | -12% | ||
COS | 2,714 | 2,794 | -3% | 12,692 | 14,946 | -15% | ||
OPEX | 862 | 757 | 14% | 2,950 | 2,675 | 10% | ||
Core EBITDA | 481 | 542 | -11% | 3,604 | 4,289 | -16% | ||
Other income | 307 | 300 | 2% | 2,263 | 1,652 | 37% | ||
Core net income | 677 | 629 | 8% | 4,626 | 4,546 | 2% | ||
Reported net | 783 | 629 | 24% | 4,732 | 4,546 | 4% | ||
income | ||||||||
Capex | 4,012 | 3,665 | 9% | 15,902 | 15,798 | 1% | ||
In Php bn | Dec 2023 | Dec 2022 | Change | |||||
Debt* | 37.4 | 35.8 | 4% | |||||
Ending cash balance | 4.4 | 3.6 | 22% | |||||
* Bank loans
KEY TAKEAWAYS
- Revenues down on lower recognition from accounts sold starting 2020 and reversals from sales cancellations, cushioned by improved recognition from new accounts qualified
- Steeper decline in COS due to better selling prices; OPEX up double digits on higher marketing expenses, personnel costs, taxes and licensing fees
- FY Finance income jumped 60% from Php 384 mn to Php 614 mn; Other income up on higher foreclosure and rental income
- Capex flat on reduced land banking, down 41% to Php 906 million
CONSOLIDATED • DMCI • DMCI HOMES • SMPC • DMCI POWER • DMCI MINING • MAYNILAD • SUMMARY • OUTLOOK | 10 |
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DMCI Holdings Inc. published this content on 07 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 March 2024 10:19:06 UTC.
