MASS housing developer 8990 Holdings Inc. grew its 2014 net profit by 52 percent to P3.3 billion, beating internal targets, as a robust economy boosted housing revenues.
The full-year earnings exceeded the profit guidance of P3 billion earlier set for the year, 8990 president Jesus Januario Atencio said in a briefing on Thursday.
This 2015, the company – which trades on the local stock exchange under the ticker HOUSE – expects to chalk up a net profit of P3.8 to P4 billion, up by 15 to 21 percent year-on-year. This assumes a net margin of at least 40 percent.
Revenues were projected to rise by 22 to 27 percent to between P9.6 billion and P10 billion this year.
In 2014, gross sales expanded by 48 percent to P7.9 billion while net margin improved to 43 percent compared to 41 percent in the previous year.
Atencio said business was supported by a good macroeconomic environment, citing a growing business processing outsourcing sector and higher overseas remittances alongside the backlog in demand.
Internally, Atencio said 8990 also increased average prices, negotiated for lower prices of materials such as paint, boosted its capacity to produce new housing units to meet the backlog in the market and provided more sales bonuses to sellers. He said: “2014 made us realize that, more than sales velocity, our capacity to build more and more units is the main determining factor to our long-term sustainability.”