8990 Holdings profit up 10%

Leading mass housing developer 8990 Holdings grew its net profit in the first quarter by 10 percent year-on-year to P1.03 billion as the strong economy continued to buoy the housing market.

For the entire 2016, 8990 Holdings sees its net income growing by 20 percent to P4.8 billion on the back of a 24 percent increase in revenues to P12 billion.

In a press statement Tuesday, 8990 president and CEO Januario Jesus Atencio said a strong mass housing market was evident in the company’s reservation sales for 1,289 units, worth P1.5 billion. “This momentum was expected to propel our performance for the second quarter,” he said.

Higher selling prices alongside higher volume helped boost 8990 Holdings’ gross sales by 10 percent to P2.17 billion in the first quarter compared to the same period last year.

Average selling price of 8990 Holdings increased by 11 percent to P1.08 million from P980,000 while it also delivered 2,003 units worth P2.17 billion in the first quarter as against last year’s 1,582 units worth P1.93 billion.

As such, 8990 Holdings reported a higher net margin of 47 percent, beating the 40 percent target for the first quarter.

Revenues from housing operations rose by 14 percent year-on-year to P2.51 billion from P2.21 billion. Sales reservations jumped by 21 percent to 1,870 units from 1,543 units, which the company attributed to a “bullish market for affordable housing and growth in production as well as deliveries.” Doris Dumlao-Abadilla