By James A. Loyola
Top mass housing developer 8990 Holdings, Inc. expects this to be a banner year as it generated a record high net income of P3.4 billion in the first nine months, a 38 percent jump from the same period in 2017.
8990 logo (Courtesy of 8990holdings.com)
In a press briefing, 8990 President and CEO Willie J. Uy said the double-digit net income growth of the Company was the result of strong buyer demand for its nationwide housing developments.
Total revenues were up by more than 41 percent to P8.6 billion. More importantly, operating profits grew by 45 percent to P4.7 billion.
As an indication of how well the company is being managed in these times of some uncertainty and high inflation, the Gross Profit Margin expanded to 55 percent.
Further, the 40 percent net income margin was higher than the expected 2018 net profit margin target of 38 percent, forecast at the beginning of 2018.
Cash generated in the first nine months of 2018 almost tripled to P11.6 billion from the P4.2 billion recorded in the first nine months of 2017.
In addition, 8990 Holdings has P588 million in unrealized sales which will be recognized in the fourth quarter of 2018.
“In 2017, we began ramping up receivables liquidation activities. Our main goal was to make 8990 less dependent on debt and have enough left to ensure the future growth of the company through land acquisition,” said Uy.
He noted that 8990 currently holds 540 hectares in its landbank, which is currently estimated to generate some P154 billion in sales in the next decade.
This year, 8990 has disbursed nearly P6 billion for its residential developments and for acquisition of raw land.
“We have been fortunate to have experienced a great year (and this) confirms that we will meet or exceed our full year targets. With our lineup of nationwide developments and increasing construction, we see revenue doubling to P20 billion in 2020 from 2017 revenues,” said Uy.