CLI Q1 revenue up by 13%
RESIDENTIAL developer Cebu Landmasters reported a solid first-quarter 2020 growth of 13 percent year-on- year in consolidated revenues from P1.87 billion to P2.1 billion.
The increase in revenue was driven by robust sales from various segments and sustained construction of new developments alongside growing contributions from its expanding recurring business. Net income to CLI shareholders came in at P572 Million. CLI’s gross profit margin of 50 percent and net income margin of 31 percent for the year is within the company’s target ratios and above industry average.
During the first five months of the year, the company registered P4.8 billion in reservation sales take-up or close to its first half 2019 level of P5.26 billion. Sales of P2 billion driven by its economic housing brand Casa Mira were recorded in the months of April and May, a period widely forecast to have little economic activity. Over-all, CLI’s unsold inventory is down to only 10 percent of total inventory.
Cebu Landmasters continues to address the still underserved demand for residential projects in Visayas and Mindanao through its wide network of partner brokers and sales agents. The listed firm has digitalized buyer transactions from end-to-end and made payment terms more affordable and attractive to customers.
“We expect demand for quality housing and residential units to rise prompted by the greater desire for safer and better planned living environments in the aftermath of COVID 19. Over the years, CLI has built a reputation for offering great value to its buyers and is ideally positioned to serve this rising demand,” Soberano said.
To fund these expansions, Cebu Landmasters has secured P8 billion worth of corporate notes and several bilateral facilities with major banks, tailored per project. CLI’s incremental cost of borrowing is between 3.8 percent to 4.2 percent for 5-, 7- and 10-year money, making it well-positioned to manage its balance sheet, lower its financing costs, and having sufficient resources to allocating funding for judicious capital expenditures.