MANILA, Philippines—The Villar-led property developer Vista Land & Lifescapes grew its first-semester net profit by 21 percent to P1.7 billion from a year ago on higher revenues booked from residential projects.
The country’s leading house-and-lot developer disclosed to the Philippine Stock Exchange on Monday that revenues were up by 21 percent year on year to P6.6 billion.
Newly installed Vista Land chief executive officer Manuel Paolo Villar said in a press briefing that the company would grow recurring revenues from commercial development, expand further the company’s geographic reach in residential development, explore further growth options such as through partnerships and work toward increasing stock trading liquidity to attract more investors.
“We’re on track to meet the P3.4-P3.5-billion (full-year) net income guidance and the consensus estimate of P3.4 billion,” said Vista Land chief finance officer Ricardo Tan Jr.
Sales in the six-month period, an indicator of the revenue trajectory, grew by 19 percent to P12.1 billion. “Our sales guidance was P23-P24 billion and we’re doing a bit better than that,” Tan said.
Gross margins improved to 49.7 percent in the first half from 48.6 percent a year ago as the company, despite higher expenditures during the period, unlocked better margins out of some of its newer projects, particularly the upscale residential projects under Brittany.
Vista Land is the holding company of five business units Brittany, Crown Asia, Camella Homes, Communities Philippines and condominium development unit Vista Residences. The flagship brand is Camella, which sells housing units between P1.2 million and P3.5 million, accounting for about 70 percent of its current business.
Villar said the company would be comfortable with Camella Homes getting the largest share of the business mix, projecting that the same market it has been serving would continue to dominate the local residential market.