Financial Capital is defined as the pool of funds available to an organization for use in the production of goods and provision of services. It is obtained through financing such as debt, equity, grants, or as generated through the organization’s operations or investments.

This section presents FPH’s sources of financial capital in 2024. It also summarizes the distribution of financial capital by our subsidiaries, and the financial performance of our portfolio. For more details on the business performance of each of our businesses, you may refer to the Business Review section of this report.

Our approach to managing our financial capital adopts strategies that increase financial returns while avoiding, mitigating, or remediating risks. More details on our management approach for financial capital can be found in Annex 3 of our 2020 Integrated Report, uploaded on our website at www.fphc.com.

Sources of Financial Capital

FPH began 2024 with PHP283.2 billion in financial capital. A little over 50 percent of this was from retained earnings in 2023, while the rest were from loans and debts. Less than one percent of this amount was attributable to stocks.

Distribution of Financial Capital

In 2024, about 86.3 percent of the group’s generated value was returned to the economy. Termed as Total Value Distributed, this includes value distributed through the company and to stakeholders in the form of operating costs, employee wages and benefits, payments to providers of capital, payments of dividends to stockholders, payments to government, and community investments. Throughout the different business segments, values distributed were between 83.2 to 97.8 percent.

Financial Performance

At the close of 2024, consolidated revenues were at PHP167.1 billion. This presents an increase of 1.3 percent (or PHP2.1 billion) compared to 2023. This was driven by the stronger results of sale of real estate and merchandise.

We recorded a Consolidated Net Income of PHP24.7 billion in 2024, 14.8 percent lower than the previous year. The Net Income Attributable to FPH also decreased by 5 percent. Overall, the corresponding Recurring Net Income attributable to FPH was at PHP13.8 billion for 2024, the same as it was in 2023.