Villar Group Chairman Manny Villar (center) and PAVI’s Manuel Paolo Villar (rightmost) at the construction site
Consumer spending had polarizing effects on the Villar Group of companies, with its real estate and supermarket firms seeing higher earnings in the first six months of the year on increased sales, while the home retail business tumbled due to shifting consumer spending behavior.
Vista Land and Lifescapes Inc. on Thursday said its net income in the January to June period had reached P6.4 billion, up by 11 percent as revenues from key projects increased.
The property developer led by real estate mogul and former Senator Manuel Villar noted that revenues had inched up by 8 percent to P19.9 billion.
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Real estate sales rose by a fifth to P9.62 billion as the company sold more homes.
Rental income likewise increased by 7 percent to P8.47 billion as rates climbed.
As of end-June, Vista Land launched P22.2 billion worth of projects. Reservation sales, an indicator of future revenue trajectory, reached P39.2 billion during the period, up by 10 percent.
“We are committed to continuing our strategy of asset maximization and optimization through Vista Estates, which now encompasses 26 locations nationwide,” Vista Land chair Manuel Villar said.
The developer currently has more than 1.6 million square meters of gross floor area across at least 100 commercial properties, which include malls, commercial centers and office buildings.
Vista Land has so far spent P13.6 billion on projects this year.
Meanwhile, supermarket chain AllDay Supermarket booked a 7.7-percent increase in net income to P185 million as sales at existing and new stores climbed.
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In a separate disclosure, AllDay said revenues were flat at P4.94 billion, up by 0.8 percent. This came as general and administrative expenses rose by 11 percent to P305.7 million due to an increase in depreciation and amortization, as well as professional fees.
Despite this, AllDay acting president and CEO Jacqueline Cano said the company’s performance was stable on the back of “operational efficiencies.”
“While taking care to preserve—even improve on the unique AllDay experience—controlled spending and cost control measures allowed us to deliver even better value to our stakeholders,” Cano said.
At the same time, however, net profit at the group’s AllHome Corp., which sells home appliances and furniture, dropped by 35.7 percent to P282.4 million due to a “significant” decline in demand in some categories.
AllHome said in its financial filing that consumers now opted to spend on travel, leisure, food and entertainment “to address their pent-up demands during the pandemic.”
Sales likewise dipped by 7 percent to P5.62 million in the first semester. — Meg J. Adonis