8990 profit up double digits in 2019, Q1

LISTED 8990 Holdings Inc. saw its net income grow by 19 percent to P5.6 billion last year from P4.7 billion in 2018.

In a filing on Tuesday, the masshousing developer reported that its revenues climbed by 30 percent to P15.3 billion in 2019 from P11.7 billion the previous year, crediting it to the 8-percent improvement in housing units delivered that year.

For the first quarter of 2020, 8990’s net income rose by 12 percent to P1.3 billion from P1.18 billion year-on-year, while revenues jumped by 15 percent to P3.5 billion from P3.01 billion.

Sales reservation also increased in the quarter by 48 percent to 3,457 units.

“We had an exceptional 2019 and first-quarter growth. However, we do expect a softening in the second quarter, given that, as part of the Philippine government’s nationwide effort to contain the virus, non-essential businesses nationwide, including real estate, had to stop operations for most of the second quarter,” Acting 8990 President and Chief Executive Officer Alexander Ace Sotto was quoted as saying in the filing, referring to the virus that causes the coronavirus disease 2019 (Covid-19).

8990 expects both the lockdown measures and the passage of Republic

Act 1146, or the “Bayanihan to Heal as One Act,” to have reduced its collections in the second quarter, but sees a rebound after that.

Despite its operations hampered by the coronavirus pandemic, the firm said it had leveraged on online selling to market and sell their projects nationwide.

It would not only focus on increasing revenues for the second half, but also on maintaining their liquidity, it added.

“Liquidity will be critical to overcome this pandemic and move toward recovery. We have already taken steps in the beginning of the pandemic to reinforce our already strong balance sheet. These included suspending our buyback program, realigning our capital expenditure program for the year, maintaining our good standing with our banks, optimizing inventories, cutting operating expenses without sacrificing our pool of employees,” Sotto said.

8890 expects 15 of its projects to contribute to its topline by yea-end, with its first flagship project Urban Deca Homes Manila anticipated to bring in half of total revenues for the year.

8990 shares shed 8 centavos or 0.94 percent to close at P8.45 each on Tuesday.