MASS-housing builder 8990 Holdings Inc. said its net income grew 38 percent during the first three quarters of the year to P3.4 billion, from last year’s P2.46 billion, as the company targets higher revenues by 2020.
The company said it achieved the growth despite higher prices, as there is still strong buyer demand for its projects. It explained people still have their respective jobs, but the hike in their salaries cannot just keep up with the rising prices.
“There’s demand, but we’re very cautious,” Willibado J. Uy, the company’s president and CEO, said.
Total revenues were up by more than 41 percent to P8.6 billion, from last year’s P6.12 billion.
Cash generated in the first nine months of 2018 almost tripled to P11.6 billion, from the P4.2 billion recorded in the first nine months of 2017.
It has disbursed nearly P6 billion for its residential developments and for acquisition of raw land.
The company said it has P588 million in unrealized sales, which will be recognized in the fourth quarter of 2018.
“In 2017 we began ramping up receivables liquidation activities. Our main goal was to make 8990 less dependent on debt and have enough left to ensure the future growth of the company through land acquisition,” Uy said.
Uy said the company is seeing its revenues at almost double in 2020 to about P20 billion, based on 2017 revenues of about P11.77 billion. To do this, it has to grow its sales between 25 to 30 percent per year starting next year.
The company mostly develops horizontal projects, but it also has some high-rise projects.
Uy explained that 8990 does not practice percentage of completion on its revenues for its high-rise projects, but recognizes them as they become completed and turned over to owners.
Many of its high-rise projects, such as in Ortigas Avenue extension in Cainta, will be finished by 2020, which means it will have more revenues by then.
“We have been fortunate to have experienced a great year. It confirms that we will meet or exceed our full-year targets,” he said.