8990 Holdings posts 20% hike in H1 profit

MANILA, Philippines–Leading mass housing developer 8990 Holdings posted a 20-percent year-on-year growth in six-month net profit to P1.8 billion as the company unlocked more revenues from new projects rolled out last year.

Total revenues went up by 32 percent year on year to P4.1 billion in the first semester, 8990 Holdings president Januario Jesus Atencio reported to stockholders in a recent meeting. This was in line with the full-year revenue target of P8 billion.

“Our income performance in the first semester of 2014 continues to be solid. It strengthens our assertion that our business model is a viable engine for growth and profitability that can be sustained over the long term,” Atencio said.

Net operating income for the first six months amounted to P1.6 billion, where 3,812 worth of house and lots sold contributed 97 percent of the performance. Atencio said 8990 was likewise able to maintain its gross and net margins at 61 percent and 44 percent, respectively.

Atencio said the new projects would continue to propel its operations toward achieving 8990 Holdings’ income and profit targets till the end of the year.

Compared to the first semester of 2013, Atencio said 8990 Holdings’ asset base had grown by 91 percent year on year in the first semester to P22.9 billion, allowing the company to “attain the size necessary to continue providing housing products and services at higher levels.”

As of end-June, Atencio reported that contract to sell (CTS) receivables net of Home Development Mutual Fund (HDMF) or Pag-IBIG Fund take-outs and prepayments stood at P12 billion, generating an interest income of at least P68 million a month.

“We have started to feel the movement of the migration to Pag-IBIG fund with a take-out of 1,519 units amounting to P1.3 billion after six months when we delivered the accounts last December 2013. 8990 and Pag-IBIG Fund have committed to work together to take out the balance by December this year,” Atencio said.–Doris C. Dumlao