VISTA LAND’S 9-MONTH NET UP 7.1%
Villar group-led Vista Land & Lifescapes (VLL) booked P5.7 billion in attributable net profit in the first nine months, up by 7.1 percent year-on-year, driven mostly by cost-cutting measures.
For the third quarter alone, VLL reported P2.05 billion in attributable net profit, likewise due to lower expenses.
For the nine-month period, VLL delivered about 65 percent of the earnings that market consensus was expecting the company to book for the full year.
In a disclosure to the Philippine Stock Exchange, the company reported that its gross margin had improved by 320 basis points during the ninemonth period while cash flow margin also increased by 440 basis points due to “various operational efficiency measures.”
Group-wide revenue declined by 8.8 percent year-on-year to P22.39 billion in the first nine months. However, cost and expenses contracted at a faster pace of 13.2 percent to P13.6 billion.
Increase in remittances
“We remain optimistic with the industry especially with the sustained increase in the overseas Filipino (OF) remittances, which are currently at about 6 percent at the end of August. Demand from OFs remained strong, which contributed to the growth in our reservation sales to P43.9 billion for the period,” Vista Land chair Manuel Villar Jr. said in a press statement.
“With the holiday season coming up and the relaxation of the mobility restrictions across the country, we are excited to welcome more customers to our commercial centers,” he added.
Real estate revenue in the first nine months amounted to P14.5 billion, down by 20 percent, due to the slower construction activities in the provincial areas where various level of lockdown had been implemented during the period.
Leasing income increased by 25 percent to P6.2 billion.
During the pandemic, VLL reported that community-based malls had fared well as the majority of tenants were providers of essential services. Newly opened commercial centers, in particular, contributed to the growth in leasing revenues.
“We are continually working on more initiatives as well as developing sustainable programs all aimed at providing better service to our clients and also expanding our reach,” said Manuel Paolo Villar, VLL president and chief executive officer.