Leading mass housing developer 8990 Holdings posted a 29-percent year-on-year decline in first quarter net profit to P736 million on lower-than-expected housing sales and delays in the processing of new project permits.
Gross revenues slipped by 26 percent year-on-year to P1.6 billion for the quarter. However, higher sales from Metro Manila are expected as soon as the sales force and construction teams normalize.
8990 Holdings also expects the launching of new projects that were delayed in 2016 to finally come onstream and contribute to revenues in the next quarters.
As an indicator of future revenue growth, sales reservations in the first three months rose by 6 percent year-on-year to P1.98 billion. These consisted of 1,978 housing units, with North Luzon ramping up its performance by 335 percent.
“Our strong sales performance reflects the robust demand for the DECA Homes brand which not only continues to be well-received in the provinces, but is fast gaining acceptance within Metro Manila,” 8990 Holdings president and chief executive officer Januario Jesus Atencio said in a press statement on Tuesday.
For the rest of 2017, 8990 Holdings expects better performance in terms of increased revenues and higher levels of cash flow. —DORIS DUMLAO-ABADILLA