8990 Holdings Q1 income up

Leading mass housing developer 8990 Holdings grew net profit in the first quarter by 17 percent year-on-year to P1.18 billion as residential condominium projects in Metro Manila started to contribute significantly to total revenues.

Revenues grew by 20 percent year-on-year in the first three months to P3.01 billion as the company delivered a total of 2,204 housing units, 23 percent higher than the units delivered in the previous period last year.

Net profit margin was at 39 percent, well above the company’s guidance of 37.5 percent..

Projects in Metro Manila contributed 25 percent of the total revenues, followed by Iloilo with a share of 12 percent, while 11 percent came from South Luzon.

“Our focus has always been on strengthening our business and growing the company. As a result, we have shown that we can constantly show solid growth. This year will be a very exciting year for us as we continue to strengthen our core business and roll out new projects that would secure our place as the country’s top affordable home developer,” said 8990 president and chief executive officer Willie Uy.

Unrealized sales for the first quarter amounted to P1 billion, which is expected to be recognized in the second and third quarters of 2019.

For 2019, 8990 expects to hit P13.5 billion in revenues compared to P11.75 billion last year.

This will be generated mostly from its projects in Luzon, particularly from its largest project to-date, Urban Deca Homes Manila in Tondo.

Situated in an 8.4-hectare property, UDH is a 13-tower residential complex offering over 13,000 units with an estimated sales value of P20 billion.

UDH Manila is the largest residential development in Tondo. —DORIS DUMLAO-ABADILLA