DMCI Holdings (DMC) Q2 2024 earnings summary

Executive summary

• Q2 and H1 2024 earnings declined year-over-year due to weaker results from coal, real estate, and mining segments, but record utility earnings from water and off-grid power cushioned the impact.

• Consolidated net income after non-controlling interests for H1 2024 fell 29% year-over-year to Php 11.14 billion, mainly due to lower contributions from energy, real estate, and construction, and a net loss in nickel mining. Improved results from water utility and off-grid power partly offset declines.

• Utilities (Maynilad and DMCI Power) posted record contributions, offsetting declines in coal (SMPC), real estate (DMCI Homes), and nickel mining.

Financial highlights

• Q2 2024 core net income: Php 5.53 bn (-32% YoY); H1 2024: Php 10.94 bn (-30% YoY).

• Q2 2024 revenues: Php 28.1 bn (-24% YoY); H1 2024: Php 55.5 bn (-21% YoY).

• Core EBITDA dropped 33% to Php 10.03 billion, with margin narrowing from 41% to 36%. Net income margin decreased to 30% from 34%.

• Q2 2024 EPS: Php 0.42 (-32% YoY); H1 2024 EPS: Php 0.84 (-29% YoY).

• Return on equity for H1 2024 at 10%.

Outlook and guidance

• Focus on large-scale industrial and infrastructure projects to boost order book.

• Continued expansion in Palawan and Semirara Island to address growing demand.

• Inflation is expected to rise in H2 2024, potentially delaying interest rate cuts. Peso depreciation may increase costs for imported goods.

• Full-year 2024 capex guidance revised down to Php 56.5 billion, with the bulk allocated to water and real estate.

• Coal segment guidance: 2024 shipments 15–16 MMT, strip ratio 12.3, heavier rainfall expected in Q3.