Mass housing builder 8990 Holdings Inc. on Thursday said its income in the first half rose by 5 percent to P3.64 billion, from last year’s P3.45 billion.
Revenues came in flat at P10.05 billion as against the previous year’s P10.01 billion. Sales in Metro Manila, Bulacan and Davao accounted for the bulk of revenues.
For the April to June period alone, the company’s income fell 10 percent to P1.71 billion from last year’s P1.9 billion. Revenues were also down 13 percent to P4.79 billion from last year’s P5.53 billion.
The company said its gross income margin for the six months of the year was at 50 percent, compared to a gross income margin of 49.5 percent last year. Consolidated net income margin for the first half reached 36.3 percent, from last year’s 34.5 percent, the company said.
“The company attributes its strong and maintained gross income margin to its sound internal financial planning policies with respect to land banking activities and project budgeting process,” it said.
As of end-June, 8990 delivered 5,364 units to homeowners, with Metro Manila accounting for the bulk of the total revenues, at 54 percent. North Luzon and Davao each contributed 14 percent; Cebu and Ormoc, 9 percent; Iloilo and Bacolod, 7 percent; and South Luzon and General Santos, 1 percent each.
In terms of total units delivered, Metro Manila again accounted for the highest at 37 percent, followed by Iloilo and Bacolod at 17 percent, Davao at 16 percent, North Luzon at 15 percent, Cebu and Ormoc at 9 percent, General Santos at 4 percent and South Luzon at 2 percent.
8990 said its vertical projects contributed majority of revenues at 60 percent, while horizontal projects generated 40 percent.
Towards the end of June, 8990 also inaugurated an expansive amenities area of Urban Deca Homes Ortigas in Pasig, the company’s largest project to date at 13.2 hectares.
8990 president and CEO Anthony Vincent Sotto earlier said despite inflationary fears and among other uncertainties, 8990 was able to sustain revenue levels.
Sotto said 8990 is well on its way to hit its target of P23 billion in revenues this year, as the company has an inventory of 3,292 units worth P3.6 billion in sales across all projects nationwide.
Of this inventory, Bulacan accounts for P963 million followed by Davao and General Santos at P709 million and Ortigas at P708 million.
The company said it has a land bank of 767.56 hectares, with Luzon at 211.14 hectares, Visayas at 438.08 hectares and Mindanao 118.35 hectares.
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The article was originally published in Business Mirror and written by VG Cabuag.
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