Golden Bria Holdings Inc. is accelerating this year’s capital spending to P5.08 billion, as the company beefs up its land banking and construction activities following its entry into the mass housing business.
The company owned by the Villar Group said in a regulatory filing it allotted P1.89 billion of the 2019 spending for construction and P1.5 billion for land acquisitions.
The company earmarked around P1.17 billion for land development and the balance for memorial park development, chapel construction, and property and equipment.
This year’s capital expenditure is 33.6 percent higher than P3.8 billion that Golden Bria actually spent in 2018.
Golden Bria said the capital expenditure plan was subject to a number of variables, including possible cost overruns, construction/development delays, the receipt of environmental and other regulatory approvals, changes in management’s views of the desirability of current plans, the identification of new projects and macroeconomic factors such as the Philippines’ economic performance and interest rates.
Previously called Golden Haven Memorial Park Inc., the company was mainly engaged in the death care business until 2017 when it changed its corporate name. The company’s primary business purpose was amended to real estate to gain flexibility in undertaking business expansion while it remains engaged in the death care industry.
Golden Bria reported a net income of P1.56 billion in 2018, up 124 percent from P699 million in 2017 on strong results from the real estate business.
The revenues jumped 56.7 percent to P5.77 billion from P3.68 billion in 2017. Golden Bria attributed the growth to the 58-percent increase in real estate sales to P3.67 billion.
Interment income rose 17.3 percent to P33 million from P28 million in 2017.
The company had 23 death care developments and five columbarium facilities across the country as of December 31, 2018.
It has 555.6 hectares total land bank in 37 cities and municipalities allocated for its mass housing projects.