Property developer Cebu Landmasters Inc. (CLI) delivered a P1.85-billion net profit at end-September, surpassing the earnings booked for the whole of last year, on the back of robust sales revenues and rapid construction progress in Visayas and Mindanao despite the prolonged COVID-19 pandemic.
“Our growth is based on our sustained earnings in 2020 and we are on track to exceed our 15-percent to 20-percent growth guidance in 2021 and in the next two to five years,” CLI chair and chief executive Jose Soberano III said on Friday.
“The pandemic has emphasized to our buyers the importance of and impact to family stability of owning a home in a safe and secure community. We will continue to meet this need and to earn the trust of VisMin (Visayas and Mindanao) homeowners moving forward,” he added.
The nine-month net profit rose by 23 percent year-on-year and breached the P1.84-billion bottom line reported for full-year 2020. Consolidated revenues for the nine-month period jumped by 34 percent year-on-year to P7.7 billion.
The bulk or 44 percent of revenues was contributed by housing brand Casa Mira, while mid-market brand Garden Series accounted for 30 percent. Its high-end brand Premier Masters contributed 24 percent.
By geographical segment, its bailiwick Cebu delivered 59 percent of revenues, while Cagayan de Oro took credit for 10 percent; Bacolod, 10 percent; Iloilo, 10 percent; all others, 11 percent. 7 projects
The company’s growth momentum in 2021 was sped up by seven projects collectively worth P12 billion, dwarfing the P5.5 billion worth of inventory brought to the property market in the same period last year.
CLI has sold out 90 percent of its inventory across all projects in different stages of development. This gave CLI about P24.2 billion worth of revenue buffer, up by 19 percent from the level at end-2020.
“These are the remaining value of the contracts by which we are going to recognize revenues as long as we deliver the construction progress, as long as we collect from our buyers … We’ve already captured this demand. It’s just a matter of constructing the unit and putting it on our financial statements,” CLI chief financial officer Grant Cheng said in a press briefing on Friday.
Cheng noted CLI was now nearing its 2019 full-year revenue level of P8.55 billion.