8990 Holdings posts double-digit income growth in 2017

8990 HOLDINGS, Inc. delivered a double- digit growth in profit last year on the back of higher revenues and improved margins.

In a disclosure to the stock exchange, the mass housing developer reported that consolidated net income grew 16% year on year to P4.14 billion from the P3.58 billion in 2016.

The real estate firm managed to reverse the 22% drop in earnings in the first three quarters of 2017, which was reportedly dampened by delays in securing project permits.

Consolidated revenue stood at P10.18 billion last year, a tenth higher than the P9.27 billion in the previous year and breaching the full-year target of P10 billion.

Real estate revenues increased 12% year on year to P10.17 billion from P9.11 billion, while rental revenue slid to P10.9 million from P12.2 million.

Gross income margins improved to 56% at the close of 2017 from 54% in 2016 mainly due to its “sound internal financial planning policies with respect to landbank acquisition and project budgeting process,” 8990 Holdings said.

“We look forward to bringing 8990 to greater heights as we launch more large-scale projects that will surely strengthen our position in the affordable housing industry,” 8990 Holdings President and Chief Executive Officer Willie J. Uy was quoted in the statement as saying.

In terms of sales value, Luzon cornered the largest chunk at 58%, followed by Visayas at 33% and Mindanao at 9%.

The company further noted that medium-rise and high-rise buildings are now contributing more to housing revenues, up to 47% from 26%.

Reservation sales inched up 3% year on year to 8,387 units from 8,111 in 2016.

8990 Holdings launched a total of 23,661 units from seven projects located in Bulacan, Davao, Iloilo, Bacolod and Cebu last year.

The company plans to launch five projects worth P60 billion this year across the country, expanding its geographically diversified real estate portfolio.

At the close of 2017, 8990 Holdings had a land bank of 510 hectares worth P152 billion, sufficient for development in the next 8 to 10 years.

Shares of 8990 Holdings were flat at P6.80 apiece on Wednesday. —