Mass housing developer 8990 Holdings Inc. said Wednesday second-quarter net income surged nearly 200 percent to P1.38 billion from P469.2 million year-on-year on strong sales of housing projects across the country.
The strong second-quarter earnings lifted the group’s first-half results to a net profit of P2.39 billion, up 96 percent from P1.22 billion on the year.
First-half revenues climbed 98 percent to P6 billion from P3.04 billion a year ago This is equivalent to 4,159 homes or almost double the 2,216 homes delivered in the first half of 2017.
“We are thrilled to report that we were able to exceed our internal targets. This makes me even more confident that we will hit our P11.5 billion revenue goal by the end of the year,” 8900 Holdings president and chief executive Willie Uy said.
Unrealized sales as of June stood at P709 million, which the company expects to book in the second half of 2018.
Sales of mass housing projects contributed 59 percent to the total revenues, while sales of medium-rise and high-rise buildings combined delivered 41 percent.
The National Capital Region accounted for 32 percent of the total revenues followed by Iloilo and Bacolod, as new projects in the region generated 19 percent of the total.
8990 Holdings said the management’s thrust to focus increasing cost efficiencies resulted in a 2.3-percent decline in operating expenses to P723 million from P740.8 million in the first half of 2017.
Net income margin, as a result, hit 39.8 percent, higher than the 2018 target of 38 percent.
“Historically, across the real estate sector, the second quarter is usually a slow period but we have seen that this is not the case for 8990 as we continue to bring something that goes beyond just mere affordability. More importantly, we deliver value for money homes to hardworking Filipinos,” Uy said.
8990 Holdings increased its land bank to 531.9 hectares with the addition of a 16-hectare property in Tanza, Cavite.
“As you know, it is not important that we hit our targets, but it is even more important for us to keep 8990’s growth sustainable. Our land bank of 532 hectares is good for the next 8 to 10 years and we believe this can bring in as much as Php156 billion in sales”, Uy said.