Consolidated financials
Emeterio Sd. Perez
AYALA Corp. (AC) reported retained earnings of P176.804 billion in an unaudited consolidated financial filing as of March 31, 2018, up P6.502 billion, or 3.818 percent, from P170.302 billion as of Dec. 31, 2017. The holding company’sconsolidated net income in the first three months increased to P12.891 billion from P11.568 billion in the same period in 2017.
The Ayala group’s financial performance in the first three months of 2018 and 2017 resulted from consolidated revenues of P70.291 billion and P60.038 billion, respectively.
In an explanatory note, AC said its consolidated quarterly financial filings “also include financial operating data with respect to Ayala’s material subsidiaries Ayala Land Inc., Integrated Micro-Electronics and Manila Water Co., associate Bank of Philippine Islands and joint venture Globe Telecom Inc.”
Apparently, AC’s revenues and retained earnings got a big boost from the financial reports of Ayala Land, Integrated Micro-Electronics, Manila Water, BPI and Globe Telecom. So did AC’s expenses.
CENTURY Pacific Food Inc. (CPFI) and subsidiaries reported its net revenue went up to P19.324 billion in the first six months of 2018 from P16.048 billion in the same period in 2017.
The group’s gross profit also increased to P5.107 billion from P4.279 billion during the two comparable periods.
As a result, CPFI and its units posted net profit after tax of P1.571 billion, up from P1.469 billion in the same period in 2017.
P7.505-B retained earnings
CPFI’s financial performance from January to June 2018 and 2017 also included the financials of its units such as General Tuna Corp., Snow Mountain Dairy Corp., Allforward Warehousing Inc., Century Pacific Agricultural Ventures Inc., Century Pacific Food Packaging Ventures Inc., Century Pacific Seacrest Inc., Centennial Global Corp., Century International (China) Co. Ltd., Century (Shanghai) Trading Co. Ltd., Cindena Resources Ltd., and Century Pacific North America Enterprise Inc.
Century group reported in its consolidated financial filing retained earnings of P7.505 billion and P5.934 billion as of June 30, 2018 and Dec. 31, 2017, respectively.
P325.267-M deficit
MRC Allied Industries Inc. reported under equity as of June 30, 2018 of P325.267 million, up from P306.253 million as of Dec. 31, 2017. This means the company and its units’ accumulated losses-turned deficit increased P19.014 million in a period of three months.
As a group of companies, MRC Industries said its net loss also increased to P19.014 million in the first six months of 2018 from P12.092 million in the same period in 2017.
In a financial filing, MRC Industries said its interest payments was among the expenses it incurred during half of 2018. It also spent P17.389 million and P10.468 million in general and administrative expenses in six-month period in 2018 and 2017.
Due Diligencer’s take
The financial performance of the three companies profiled above may not tell everything the public investors wanted to know. Unfortunately, AC, Century group, and MRC Allied Industries only tell investors their consolidated financials.
The public investors miss what could be the more important data that should have been posted on the website of the Philippine Stock Exchange (PSE). How much, for instance, are the amounts declarable as dividend either in stocks or in cash?
Of course, the public have to rely on the footnotes of financial filings to know the answer. The problem, though, is how to find the explanations of listed companies among the footnotes.
MRC Allied Industries need not tell the public about dividend. Because it’s losing, it has to pile up retained earnings before its investors along with its owners would enjoy the benefits of profitability.
For a drastic change in the way financials are being posted on PSE website, will the SEC require listed companies to separate the amounts of retained earnings that are declarable as dividend? Just asking.
esdperez@gmail.com
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