Business

Crippled by coronavirus, Yuchengco holding firm widens net loss

House of Investments, the holding company of the Yuchengco family, said its net loss ballooned to P528.67 million in the second quarter from only P37.4 million a year ago, weighed down by the coronavirus outbreak.

In a quarterly report filed with securities regulators, HI said revenue plummeted to P2.62 billion from P7.39 billion due to the temporary closure of its businesses in response to the stay-at-home order issued by the government to contain the spread of the virus.

For the six-month period ending June, the group reported a net loss of P296.4 million, a reversal of the P353.7 million earned last year as revenue fell to P10.46 billion from P15.4 billion.

Revenues from the construction division declined by 35% due to several issues on infrastructure projects coupled with the impact of the Taal Volcano eruption in the first quarter.

The group’s automotive segment also showed weak results. Sales of its car dealerships –Honda Fairview, Honda Marikina, Honda Marcos Highway, Isuzu Greenhills and Honda Kalookan — dived 47.3% to P1.7 billion as consumers decided to defer spending on new vehicles.

Revenues from school operations showed a significant growth from last year as the freshmen enrolment picked up after the K-12 program transition period, coupled with the revenues from the new entities acquired by iPeople in May 2019 (from the merger with AC Education Inc).

This was tempered, however, by the financial effects of the suspension of online classes in April, and the granting of discounts and rebates to students as a result of suspension of face to face classes.

Other income fell to P30.58 billion from P77.47 billion which included dividends received from one of the investments of the group, coupled with lower interest income.

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