8990 bullish on growth

MANILA, Philippines — Mass housing developer 8990 Holdings Inc. expects to sustain its growth momentum this year following its strong performance from January to June.

8990 Holdings president and CEO Anthony Vincent Sotto said the company is on track to hitting its P24-billion revenue target for the year.

This comes after 8990 reported a net income of P3.79 billion in the first half, up 2.5 percent from P3.69 billion a year ago.

The company raked in revenues of P10.07 billion despite the prevailing challenging economic environment.

“The first half of 2023 has been a period of growth, achievement, and valuable learning experiences. Together, we have surpassed financial milestones, demonstrated adaptability, and strengthened our position as a leading player in the industry,” Sotto said.

The low-cost housing builder recorded sales of P4.6 billion as of end-June, with P2.6 billion to be recognized within the year.

In the first six months, 8990 Holdings delivered a total of 6,105 homes.

In terms of value, the National Capital Region (NCR) accounted for 52 percent, followed by North Luzon with 18 percent and Davao and Iloilo/Bacolod with 10 percent each.

The Cebu/Ormoc branch generated nine percent, while South Luzon contributed one percent and Gen Santos, 0.17 percent, the company said.

In terms of units, 8990 said the NCR branch delivered 30 percent of the total followed by Iloilo/Bacolod with 22 percent, North Luzon with 21 percent and Davao with 19 percent.

Cebu/Ormoc branches brought in seven percent of the total. South Luzon was less than one percent.

High-rise buildings (HRBs) generated 56 percent of the total value of units delivered while mass housing brought in 36 percent. Medium-rise buildings (MRBs) accounted for five percent, while lots contributed three percent of the total.

From a per unit basis, mass housing was still the leading contributor to the total with 62 percent; followed by HRBs with 33 percent and MRBs with five percent.

To date, 8990 has a land bank of 718.35 hectares to be used for future projects which are expected to contribute approximately P155 billion in potential revenues for 8990 Holdings in the next seven to eight years.

As the company moves forward into the second half, it vowed to remain committed to upholding its values of excellence, innovation and customer satisfaction.

“Our focus on sustainable growth and operational efficiency will continue to guide us as we navigate through both opportunities and challenges,” Sotto said.