Filinvest posts lower income

Filinvest Land Inc. (FLI) posted a net income of P320 million in the first half of 2001, a 14-percent drop from P374 million in the same period last year as decreased income from other investments and higher operating expenses weighed down the gain in revenues.

Financial documents filed at the Securities and Exchange Commission showed that indicative of the continuing difficult business environment, FLI realized near flat growth in gross profit on sales of subdivision lots and houses, from P496.3 million to P505.3 million.

The two-percent increase in sales of affordable and middle income projects was contributed by the Springfieldview, Fairwayview and Crystal Aire subdivisions in Cavite; Serra Monte Mansions in Cainta; and regional projects in Cebu and Davao.

The company derives an almost equal mix of sales coming from middle-income and high-end projects accounting for 51 percent of total revenues, while 49 percent are contributed by sales of socialized housing units.

However, FLI said operating expenses (marketing, selling and administrative expenses) went up by six percent from P229 million to P242 million due to higher budget for advertisements, marketing activities and brokers’ incentives.

FLI also registered lower income stream from other sources, mainly from interest earned on temporary placements and installment contract receivable, decreasing by 50 percent from P112 million to P46.6 million due to lower interest income. The lower interest income was a result of reduced cash balance channeled into the payment of long-term commercial papers last year and the full payment of installment contracts receivable from an affiliate. – Conrado Diaz Jr.