DMCI chief expects ‘muted’ growth in 2023

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Metro Manila (CNN Philippines, May 17) — The Consunji family's DMCI Holdings Inc. is seen to post “muted” growth this year amid persistent economic challenges here and abroad, its chairman said.

DMCI chairman and president Isidro “Sid” Consunji said Wednesday that the elevated inflation, interest rate hikes, including the lingering impacts of the COVID pandemic, would continue to weigh on the growth of some of the group’s businesses.

“We expect a blend of challenges for our business portfolio because of moderate global economic recovery, persisting geopolitical tensions, and elevated domestic inflation,” he said in a speech during the company’s annual stockholders’ meeting.

DMCI’s construction business, he noted, would take more time to bounce back to its pre-pandemic performance due to high interest costs.

While its residential development business would also take a hit from the rise in interest rates and inflated cost of raw materials, it is expected to recover “faster” than construction as DMCI penetrates different segments and markets, expanding it to cover high-end and lower-end formats.

But Consunji said there are still “bright spots” in DMCI’s power and water segments.

“They should benefit from recovering consumption and better prices,” he said.

The executive noted that DMCI Power is set to expand with the commissioning of additional plants in Palawan and Masbate this year, while Maynilad has started benefitting from the five-year rate rebasing adjustment.

DMCI Mining also secured the needed environmental compliance certificates to “more than double” the firm’s nickel ore production in Zambales, Consunji added.

In 2022, DMCI Holdings ended the year strong after its profit soared by 69% to ₱31 billion, with its mining, power, water, and home businesses leading the growth.