8990 tar­gets to reach P20-B rev­enues by 2020

Business World - - Corporate News - Arra B. Fran­cia

8990 HOLD­INGS, Inc. aims to gen­er­ate P20 bil­lion in rev­enues by 2020, driven by the com­ple­tion of its mid-rise con­do­minium project in Or­ti­gas Ex­ten­sion.

The listed mass hous­ing de­vel­oper said it should grow rev­enues by an av­er­age of 25-30% in the next two years to reach this tar­get.

“For rev­enues, we’re aim­ing for P11.5 bil­lion now, next year we’ll have P13 bil­lion, and then P20 bil­lion af­ter,” 8990 Hold­ings In­vestors Re­la­tions Of­fi­cer Pa­tri­cia Vic­to­ria G. Ila­gan said in a me­dia brief­ing in Makati City yes­ter­day.

“So re­ally the ramp up would be in 2020 be­cause we don’t do per­cent­age of com­ple­tion. That’s why you would ex­pect it at the tailend once the build­ings are de­liv­ered.”

If re­al­ized, this would be dou­ble the com­pany’s P10.2-bil­lion rev­enues in 2017.

8990 Hold­ings Chief Fi­nan­cial Of­fi­cer Roan Bue­naven­tura-Tor­re­goza said growth will de­pend on sales of its P30-bil­lion con­do­minium com­plex in Or­ti­gas Ex­ten­sion, which will be launched early next year.

Ur­ban Deca Homes Or­ti­gas con­sists of 22 build­ings with around 19,000 units on a 13-hectare prop­erty. Units will range from 27 square me­ters (sq.m.) to less than 40 sq.m. each, with prices start­ing at P1.6 mil­lion. This is the com­pany’s largest project to date.

“Or­ti­gas will launch early next year, and from there it will take 18 to 24 months to com­plete the first build­ings which we project to take out in 2020,” Ms. Bue­naven­tu­raTor­re­goza said.

For the first nine months of 2018, 8990 Hold­ings de­liv­ered a 38% in­crease in net in­come to P3.41 bil­lion, ver­sus the P2.45 bil­lion it booked in the same pe­riod a year ago.

Rev­enues went up 41% to P8.6 bil­lion, in­di­cat­ing a net profit mar­gin of 40%, higher than the com­pany’s 38% fore­cast at the start of the year.

Sales reser­va­tions mean­while stood at P7.27 bil­lion, flat from year-ago fig­ures of P7.17 bil­lion.

The com­pany noted it has P588 mil­lion in un­re­al­ized sales that will be rec­og­nized in the fourth quar­ter, which is ex­pected to boost rev­enues.

8990 Hold­ings ended Septem­ber with around 540 hectares in its land bank, which it noted could gen­er­ate some P154 bil­lion in sales over the next 10 years. Of this, 246.9 hectares are lo­cated in Visayas, 150.9 hectares in Lu­zon, and 142.1 hectares in Min­danao.

The com­pany said it lat­est land ac­qui­si­tion is lo­cated in Siqui­jor, where they plans to launch a new brand for its hos­pi­tal­ity busi­ness.

Ma­jor­ity of the sales to be re­al­ized from the projects are lo­cated in Lu­zon at P107 bil­lion, fol­lowed by Visayas at P39 bil­lion, and Min­danao at P8 bil­lion.

Shares in 8990 slipped 0.54% or four cen­tavos to close at P7.34 each at the stock ex­change on Thurs­day. —

Newspapers in English

Newspapers from Philippines

© PressReader. All rights reserved.