Housing developer 8990 Holdings, Inc. posted a 15.93 percent improvement in net income to P6.29 billion in the first nine months of 2022 from P5.43 billion in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said total revenues grew 10.93 percent to P17.03 billion in the nine month period from P15.35 billion last year.
For the third quarter, 8990 reported a 34 percent growth in net income to P2.65 billion this year from the P1.97 billion earned in the same period of 2021.
Revenues hiked 30 percent to P6.98 billion in the third quarter of 2022 from P5.34 billion in the same quarter last year as the firm it benefited from the continued easing of restrictions and the reopening of the local economy.
“Our margins reflect our healthy financial position with gross margin at 53 percent by the end of September and net margin at 37 percent,” said 8990 President and CEO Anthony Vincent Sotto.
He noted that these figures were an improvement from the 50 percent gross margin and 35 percent net ,argin for the first nine months of 2021.
8990 Holdings delivered 8,882 additional homes during the nine-month period of 2022 of which Luzon accounted for 56 percent of total units delivered, followed by Visayas at 23 percent and Mindanao at 22 percent.
For revenues, 72 percent were contributed by Luzon, mainly from the Urban Deca Homes Ortigas project. Mindanao accounted for 15 percent and Visayas the 13 percent balance.
8990’s High-Rise Building projects continued to be popular among homebuyers, as this business segment contributed 59 percent of total revenues, with the 41 percent balance going to Horizontal projects.
Sotto said that, in the coming years, 8990 expects more revenues from Urban Deca Homes Banilad in Mandaue City, Cebu and the new Deca Homes Pampanga Phase 1 project as turnover schedules are met.
“On top of our current land bank, we are also in the process of unlocking the value of several properties nationwide through our 16 ongoing projects,” he said.
As of the end of the third quarter, 8990’s land holdings stood at 704.66 hectares with potential sales value of P155 billion.
Sotto remains confident that, with 2022 being a “good year” thus far, 8990 will “hit yet another revenue milestone at the end of the year.” The company has previously set a P23 billion net income target for fiscal year 2022.
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The article was originally published in Manila Bulletin and written by James A. Loyola.