Robinsons Land Q1 profit: P4.1-B (+53%)

Robinsons Land [RLC 15.20 ?0.8%; 26% avgVol] [link] teased its Q1 results on Friday, revealing that its net income attributable for the quarter reached P4.07 billion, a 53% y/y increase. RLC said the result was “driven by solid performances across all business units”, and by a P730 million one-time gain on the “reclassification of its GoTyme investment”. Excluding the one-off gain, RLC’s net income attributable was still P3.34 billion, which was a 21% y/y increase. Consolidated revenues were up 19%, headlined by a 17% increase in RLC’s malls and hotels revenue to P7.9 billion. Property development generated P3.13 billion in revenue (+25%).

MB BOTTOM-LINE: We will need to see the full Annual Report to get the “warts and all” view of what happened in Q1, but the key takeaways here are the degree to which RLC was able to snag some of the uplift from the surging malls sector, the degree to which Robinsons Offices managed to grow its topline amid a sector-wide downturn, and the explosive performance of the Robinsons Hotels and Resorts unit that saw a 54% increase in revenue to P1.35 billion in Q1. I’m not sold on RLC’s ability to scale its tourism-facing businesses, but that’s the business unit that is attached to the most volatile sector, so maybe that’s a good thing for long-term stability.

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