Property firm profits exceed target

Listed property developer 8990 Holdings Inc. announced its most profitable six months results, to date. This was mainly driven by the triple digit growth seen in second quarter net income of P1.38 billion from just P469.20 million in 2017.

This lifted 8990’s bottomline for the first half of 2018 to P2.39 billion or 95.8 percent higher than the P1.22 billion registered in the same period last year.

Strong revenue growth in the first half supported bottomline growth performance.

Revenues in the first six months jumped 97.5 percent to P6.0 billion from P3.04 billion in 1H 2017. This was equivalent to 4,159 homes or almost double the 2,216 homes delivered in the first half of 2017.

Mass housing contributed 59 percent of total revenue while medium rise buildings (MRB) and high rise buildings (HRB) combined brought in 41 percent.

Top revenue generators in terms of value were NCR which brought in 32 percent of total revenues followed by Iloilo and Bacolod as new projects in the region generated 19 percent of the total.

According to 8990 President and CEO, Willie J. Uy, “ 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.”

Unrealized sales by the end-of June 2018 was at P709 million which the Company expects to book in the second half of 2018.

Gross profits grew 75.6 percent year-on-year to P3.1 billion. However, slightly higher costs of goods resulted in a narrower margin of 52.1 percent from 58.6 percent in 1H 2017.

To drive the company’s profitability, 8990 management focused on increasing cost efficiencies. This pushed down operating expenses for 1H 2018 by 2.3 percent to P723.56 million from P740.86 million in 1H 2017.