8990 posted 95.8% profit growth in H1

Leading mass housing developer 8990 Holdings jacked up its first semester net profit by 95.8 percent year-on-year to P2.39 billion, a record semestral profit for the company, on better-than-expected margins and selling momentum.

8990 Holdings posted a triple-digit growth in second quarter net income which hit P1.38 billion from P469.20 million a year ago, defying the seasonal slump during this period.

“Historically, across the real estate sector, the second quarter is usually a slow period but we have seen that this is not the case for 8990 as we continue to bring something that goes beyond just mere affordability. More importantly, we deliver value for money homes to hard working Filipinos,” 8990 Holdings president Willibaldo Uy said in a statement.

Revenue in the first six months jumped by 97.5 percent year-on-year to P6 billion as the company booked revenues from the sale of 4,159 homes, almost double the 2,216 housing units delivered in the first half of 2017.
Mass housing contributed 59 percent of 8990’s total revenue in the first semester while medium-rise buildings and high-rise buildings combined brought in 41 percent.

The National Capital Region brought in 32 percent of total revenue, followed by Iloilo and Bacolod as new projects in the region generated 19 percent of the total.

Sales yet to be recognized as revenues stood at P709 million as of end-June. These are expected to be booked in the second half of 2018.

Gross profits grew by 75.6 percent year-on-year to P3.1 billion. —DORIS DUMLAO-ABADILLA