MASS-housing builder 8990 Holdings Inc. said its income for the third quarter of the year grew 9 percent to P1.2 billion, from last year’s P1 billion, a sign that the company’s earnings start to recover.
Net income margins remained stable at 40 percent, the company said.
Third quarter revenues grew 29 percent year-on-year to P3.1 billion, from P2.45 billion last year on strong housing demand in all its projects across the country.
This brings revenues for the first nine months to P6.1 billion down from last year’s P7.18 billion, but the company said it is on track to meet its full-year target of at least P10 billion.
During the first two quarters of the year, the company’s saw its earnings fall as a result of a slowdown in launching projects.
“Momentum has shifted to create a turnaround in our third quarter revenues. 8990’s presence in Luzon, the Visayas and Mindanao allows us to easily capture the growing affordable housing demand across the country,” incoming 8990 President and CEO Willibaldo J. Uy said. “The real challenge for us now is keeping up with the ever-growing housing demand which so far has resulted in a housing backlog of 5.9 million.”
According to Uy, they saw in the third quarter “how fast the market can absorb readily available units in developments such as Iloilo and Manila.”
“Once we started completing units and securing permits, we saw the number of units sold in Iloilo go up by 204 percent, while recognized units sold in Manila nearly doubled from what it did in the first half of 2017.” A total of 4,431 units were delivered in the first nine months of the year with Luzon contributing 59 percent of the total, followed by the Visayas regions with 30 percent and Mindanao with 11 percent.
Meanwhile, income from its contract-to-sell portfolio of P1.1 billion rose 3 percent year-on-year.
“We are also happy to report that we have reached a new milestone in our commitment to cash generation, which is reflected in the outstanding performance of our Home Development Mutual Fund Take Outs and Sale of Contract to Sell activities,” Uy said.