8990 Holdings netted P3.8B in H1 2023

MANILA – Listed mass housing developer 8990 Holdings Inc. aims to sustain growth for the rest of the year after net income during the first semester climbed by a modest 2.5 percent to P3.8 billion.

The developer said it remained on track to reach its year-end revenue target of P24 billion after sales in the first semester reached P10 billion.

“As we embark on the next phase of our journey, I am confident that we will overcome any obstacles that come our way and continue to achieve greater heights,” 8990 Holdings president and CEO Anthony Vincent Sotto said in a statement.

The developer noted that gross margins slid to 48 percent from 50 percent during the period on higher costs and supply chain constraints. Reservation sales reached P4.6 billion, of which P2.6 billion will be recognized this year.

8990 Holdings earlier embarked on a strategic shift towards Pag-IBIG Financing for most of its projects.

“While the transition has been ongoing, we understand that recognizing revenue from these projects may require some time as our buyers adapt to this financing scheme,” Sotto said.

“Despite the transition, the demand for affordable housing remains remarkably high. Our projects have received a positive response from prospective buyers, reaffirming the need for quality, affordable homes in the market,” he added.

From January to June this year, 8990 Holdings delivered a total of 6,105 homes, with roughly a third coming from Metro Manila. This was followed by Iloilo/Bacolod (22 percent), North Luzon (21 percent) and Davao (19 percent). Cebu/Ormoc branches brought in 7 percent of the total. While South Luzon accounted for less than 1 percent.

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The article was originally published in Inquirer and written by Miguel R. Camus.