The property arm of the Consunji family posted a net loss of P197 million in the first three months of 2020, a massive turnaround from its P481 million profit during the same period last year.
Revenues for the period dropped 63 percent to P1.6 billion, from P4.4 billion a year ago. DMCI booked a nonrecurring loss of over P400 million in the first quarter due to sales cancellations in its Davao property.
DMCI blamed a slowdown in revenue recognition due to collection adjustments and delays in construction due to the enhanced community quarantine imposed in the last two weeks of March.
But the biggest reason for its losses is the increase in construction costs due to “dressing up units” of condo projects damaged by the Mindanao earthquake.
The earthquakes which shook Davao City in October and December 2019 caused major damage to four DMCI condos – Ecoland 4000, Verdon Parc, Palmetto Place and Magallanes Residences.
President Rodrigo Duterte himself interceded in behalf of the DMCI condo buyers for the Consunjis to address their demands for refunds or payment or damages.
Sales and reservations fell 36 percent to P7 billion as project launches for the period were postponed due to the coronavirus pandemic.
Capital expenditures surged 68 percent to P6.2 billion from P3.7 billion last year. More than half of its spending went to development cost and the rest to land and asset acquisition.