MPIC delivers new high with 27% increase in Core Income to P12.5 billion
Metro Pacific Investments Corporation’s (“MPIC” or the “Company”) Consolidated Core Net Income rose 27% to a record-high P12.5 billion in the first half of 2024 compared with P9.9 billion in the same period last year.
Improved financial and operating results from MPIC’s holdings delivered a 20% increase in contribution from operations to P14.8 billion. This was mainly driven by strong growth in energy sales at Meralco, billed volumes at Maynilad Water, and traffic on the toll roads complemented by higher tariffs.
Among the Company’s core businesses, Power contributed the largest share at P10.1 billion or 68% of Net Operating Income (“NOI”), while Toll Roads and Water contributed P3.2 billion and P2.5 billion, respectively, representing 38% of NOI.
Reported Net Income rose 23% to P12.5 billion from P10.2 billion in 1H 2023.
STAND-ALONE PERFORMANCE OF CORE OPERATING COMPANIES
POWER:
MERALCO
Financial and Operational Highlights
• Total Revenues rose 6% to P237.5 billion, mainly due to higher energy sales by the distribution utility, which grew 9% to 26,954 GWh. This was slightly offset by the lower energy fees at Global Business Power which resulted from lower plant availability of its Cebu Energy Development Corporation power plant.
• The six-month sales volumes got a boost from second-quarter sales, which hit a new record with monthly volumes breaching the 5,000 GWh level in May, largely driven by double-digit growth in Residential and Commercial segments. Demand in the Meralco franchise area peaked at 9,323 MW in April, up by 10% from the 8,438 MW peak demand experienced in May of 2023.
• Consolidated Core Net Income increased 21% to P23.2 billion, driven by continuing contributions from power generation, retail electricity supply, and other non-power businesses.
• Reported Net Income improved 26% to P22.4 billion.
TOLL ROADS:
METRO PACIFIC TOLLWAYS CORPORATION
Financial and Operational Highlights
• Toll Revenues rose 18% to P15.4 billion due to a combination of toll rate increases and traffic growth in all markets.
• Average daily vehicle entries
o Philippines — rose 7% to 693,175
o Vietnam — increased 1% to 78,390
o Indonesia — declined 1% to 1,203,631
• Core Net Income improved further by 25% to P3.4 billion, boosted by the higher share in net earnings of equity-accounted Vietnam toll roads.
WATER:
MAYNILAD
Financial and Operational Highlights
• Revenues grew 23% to P16.4 billion, reflecting 4% growth in billed volumes and a 19.8% adjustment in tariff in early January.
• Core Net Income rose 29% to P5.6 billion, broadly consistent with Revenue growth and augmented further by lower operating expenses.
BALANCE SHEET HIGHLIGHTS — MPIC PARENT
• Cash and cash equivalents and short-term investments amounted to P14.4 billion.
• Net debt amounted to P61.5 billion versus P62.6 billion in December 2023.
DIVIDENDS
The Board of Directors has approved the declaration of interim dividends of P0.10 (10.00 centavos) per common share, payable on September 19, 2024, to all shareholders of record as of September 2, 2024. This represents 25% of Core Income.
NEW ACQUISITION
In July 2024, Metro Pacific Agro Ventures (MPAV) announced its entry into agreements to acquire 100% of Universal Harvester Dairy Farms, Inc. (UHDFI) in a bid to continue its mission to provide fresh, high-quality dairy products for the Filipino people.
UHDFI, located in Maramag, Bukidnon, operates under the Bukidnon Milk Company brand, producing fresh milk, flavored milk, yogurt, and cheese products, with presence primarily focused on key cities in Visayas and Mindanao. Moreover, UHDFI is the largest state-of-the-art dairy production facility in the country, the showcase model for the community, private sector, and government partnership, and also a major supplier of products for the National Dairy Authority’s (NDA) Milk Feeding Program, primarily focused on ensuring schoolchildren have regular access to high-quality fresh milk.
MPAV’s acquisition, which values UHDFI at over P700 million, comes after its previous investment in The Laguna Creamery, Inc. (TLCI), known for popular brands Carmen’s Best ice cream and Holly’s Milk. Since partnering with MPAV, TLCI has doubled its sales in just two years; by combining the resources of TLCI and UHDFI, MPAV aims to establish a national dairy champion with farms across the country, a nationwide reach, and a comprehensive range of products.
MPAV’s continued investment in the dairy industry supports an underserved segment of the economy. In March 2024, the NDA reported that the country continues to import 98 percent of its milk demand. At current rates, the NDA envisions reaching a milk production target of just 5% of local demand by 2028.
CONCLUSION
“Our power, toll roads, and water business continued to deliver double-digit growth in earnings on the back of strong volumes and the impact of long overdue tariff adjustments,” said MPIC Chairman, President, and CEO Manuel V. Pangilinan.
“With MPIC continuing to maintain a low cost of capital in a rising interest rate environment, the Company is poised to maintain its strong growth trajectory for the rest of the year.”
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