Paranaque City, Philippines, February 20, 2020 — D.M. Wenceslao & Associates, Incorporated (PSE: DMW) reports net profit attributable to equity holders of P2.37 billion in 2019, 24% higher than the prior year on strong revenue growth and focused cost management. Operating profit expanded 65% to P2.27 billion. Cash flow from operating activities rose to P3.83 billion from P1.05 billion.
Revenues grew 63% year-over-year to P3.51 billion, mainly driven by sales of land and condominium units. Revenues from recurring income streams were up 3% to P1.96 billion or 56% of total revenues. In particular, revenues from leasing of land increased 1% to P979.1 million, rentals of buildings increased 4% to P793.5 million and other revenues related to leasing increased 7% to P186.2 million. Revenues from land sales were P935.9 million compared to P1.3 million in the prior year, and residential sales were P547.7 million compared to P119.4 million.
“I am pleased with our 2019 results, concluding another successful year marked by strong revenue and earnings growth as well as cash flow generation, said Delfin Angelo “Buds” C. Wenceslao, chief executive officer. “During the year, we delivered our first residential project, started construction on two commercial properties and reached different stages of development for our ongoing projects which will begin contributing meaningfully to earnings in 2020 and beyond.”
As of December 31, 2019, the Company’s land holdings, completed properties and pipeline development projects in Aseana City totaled 569,359 sq.m. and are valued at approximately P209.8 billion, according to Colliers. Total leasable gross floor area aggregated to 89,914 sq.m., leased land area was 158,079 sq.m. and land reserves totaled 303,836 sq.m.
“In 2020, we are stepping up execution of business strategies necessary for sustainable growth. These are to: plan, complete and operate our projects on schedule, within budget and within quality standards; pursue new product lines, geographies and partnerships profitably; develop our brand identity and positioning through quality developments and customer experience; cultivate a skilled and process oriented team; and achieve double digit net income growth through improved performance and managed cost strategies.”