8990 Holdings posts 11.8% growth in income

MANILA, Philippines – Listed mass housing developer 8990 Holdings Inc. reported double-digit growth in earnings on the back of strong sales and increased construction capacity in the first nine months.

In a statement, 8990 said consolidated net income reached P3.16 billion from January to September, 11.8 percent higher compared to P2.83 billion a year ago.

This was on the back of growth in revenues of P7.06 billion, up 13.1 percent from P6.24 billion a year ago as sales rose 6.2 percent to P5.85 billion during the period from P5.51 billion a year ago.

In the third quarter alone, net income inched up to P1.04 billion, two percent higher than the P1.02 billion a year ago.

This was on the back of gross sales of P2.55 billion 16 percent higher than the P2.197 billion recorded a year ago.

8990 President and Chief Executive Officer Januario Jesus Atencio said the company attributes its strong and maintained gross income margin to sound internal financial planning policies with respect to land banking activities and project budgeting process.”

He said a highlight in the year’s performance is the increase in the revenue share of its Luzon projects.

According to the mass housing developer, of the total number of units delivered, about 48 percent or 3,103 units were in Luzon particularly the National Capital Region, Cavite, and Pampanga.

Meanwhile, about 26 percent or 1,704 units were in the Visayas while Mindanao accounted for 25 percent or 1,636 units.

This year, 8990 has successfully launched nine new projects in Muntinlupa, Cavite, Iloilo, Davao, and Cebu consisting of 7,827 housing units.

In terms of unrealized sales in the third quarter, the company said there are 890 units worth P906 million but noted this would be realized in the fourth quarter with the proper turn over to buyers.

Majority of buyers are young, college educated gainfully employed as office workers particularly in the Business Process Outsourcing (BPO) sector and overseas Filipino workers earning at least P35,000 a month.

Cost of sales and services, meanwhile, jumped 19.4 percent to P3.01 billion from P2.52 billion amid the sales growth of the company’s low-cost housing segment translating to a gross income of P4.04 billion or nine percent higher from P3.72 billion.

For its land bank, 8990 continued to beef this up with the acquisition of 25.4 hectares in Leganes, Iloilo, and 60.2 hectares in Cabug, Bacolod, which collectively brought the company’s total landbank to 503 hectares.