Filinvest eyes 20% annual profit growth 

Filinvest Development Corporation (FDC), the investment holding company of the Gotianun family, is confident of achieving its earnings growth target of at least 20 percent in the next five years, according to a report by Manila Bulletin.

During the firm’s annual stockholders’ meeting, FDC President and CEO Rhoda A. Huang said “FDC achieved strong financial results and made significant progress towards fulfilling our long-term goals in 2023.”

“We are driven to continue this trajectory to grow earnings by an average of at least 20 percent annually. We must push for transformation across the group to drive quality and attain faster earnings growth to achieve this target in the next five years,” she added.

Huang noted that, “This means a healthy balance of higher return on invested capital and revenue growth. We believe we are positioned well to achieve this.”

Towards this goal, she said FDC will shape and optimize its portfolio to guide strategic focus and support the businesses, in areas such as capital allocation, business development, and initiatives to accelerate value creation.”

Huang said FDC will also “drive synergies and management systems. As a cohesive group, our portfolio companies can leverage on key platforms that will drive operational excellence and improve ways of working so that our businesses can focus on business building.”

The firm reported a robust 58 percent increase in both Earnings Per Share (EPS) and Dividends Per Share (DPS), in line with its net income increase in 2023.

FDC registered an attributable net income of P8.9 billion in 2023, 58 percent higher than the P5.7 billion recorded the previous year, while consolidated net income reached P12.1 billion, rising by 46 percent year-on-year.

Proportionate to its income, FDC reported 2023 EPS of 1.03, while dividends due its shareholders amount to 0.10346 per share, a 1.93 percent percent yield based on FDC's end-December 2023 share price.

FDC’s growth was driven by a 31 percent increase in total revenues and other income from P71.1 billion in 2022 to P92.8 billion in 2023 following a double-digit improvement across all business segments.

The increase in revenues and other income by business segment were as follows: Banking, 35 percent; Real Estate, 20 percent; Hospitality, 77 percent; Power, 35 percent; and Sugar, 16 percent. 

The level of total revenues and other income of FDC in 2023 has surpassed by 8 percent the amount generated before the pandemic of P84.6 billion in 2019.