Vista Land nets P2.6B in 9 mos, up 20%
MANILA, Philippines—Villar-led Vista Land & Lifescapes Inc. grew its nine-month net profit by 20 percent to P2.61 billion from a year ago on robust real estate revenues, keeping the company on track to meet full-year targets.
The leading house-and-lot developer is targeting about P3.4 billion in net profits and about P24 billion in sales for the full year.
“We are on track for another year of solid growth in sales, revenues and net income,” said Vista Land CEO Manuel Paolo Villar.
“In spite of the market uncertainties overseas, I am confident that the strategies we have adopted will allow us to meet our full year revenue and earnings goals,” he said.
For the third quarter alone, the company booked P863 million in net profits, up by 19 percent over a year ago.
For the first nine months, Vista Land’s real estate revenues expanded by 21 percent to P9.9 billion from a year ago. Gross margin firmed up at 50.5 percent from 49 percent a year ago.
Despite the fiscal crisis in Europe and the political unrest in the Middle East, Villar said the company continued to grow its sales. In a press briefing, he added that the company was prepared to face tougher competition as more property developers enter its bailiwick.
“We’re very confident on our prospects. We have a much better branding, distribution, much better product in those segments and we’re well-equipped to compete. We’ve been competing there in more than 30 days,” Villar said.
Vista Land chief finance officer Ricardo Tan said the company would continue to focus on house- and-lot units rather than condominium. Tan said the company was more upbeat on the house-and-lot segment because this was supported by end-users and is historically a more stable market.
For the developer like Vista Land, such residential units are also quicker to deliver, which means revenues can be recognized much faster than in the construction of high-rise buildings. For the consumer, they can hold on to the land titles for life and bequeath them to the next generation, Tan said.
Vista Land reported sales for the first nine months of P18.3 billion, on track with its sales goal of P24 billion for the full year.
