Mass housing developer 8990 Holdings Inc.reported that its consolidated net income fell 47 percent to P1.48 billion in the first half of 2020 from P2.82 billion in the same period last year due to the lockdown imposed to control the spread of SARS-COV2.

In a disclosure to the Philippine Stock Exchange, the firm said its consolidated net income margin for the first six months of 2020 was 30.2 percent, compared to a consolidated net income margin of 40.2 percent for the same period last year.

For first semester of the year, 8990 posted a consolidated revenue of P4.91 billion  percent drop from the P7.01 billion registered for the first six months of 2019.

“The decrease was mainly attributable to the decreased sales nationwide as the country was placed in Enhanced Community Quarantine (ECQ) due to Covid 19 pandemic,” 8990 said.

It added that, “The company technically has only one month of operations in the second quarter, with its Cebu branch barely opening in the second quarter as the Cebu City has been placed into extended ECQ.”

The lower sales also translated to a 25 percent drop in consolidated cost of sales and services to P2.23 billion from P2.96 billion in the first half last year.

Howecer, 8990’s consolidated finance costs for the six months ended June 30, 2020 was higher at P703.6 million from P652.2 million in the same period last year due to increased interest charged brought about by increased borrowings.

During the first half of 2020, 8990 also generated consolidated other income of P326.4 million, a decrease from the consolidated other income of P578.2 million in the first half of 2019.

Interest income on the Company’s installment contract receivables under its CTS Gold program contributes to the majority of the other income.

The decrease was due to decreased collection on the CTS Gold program as the government imposed moratorium on installment payments under the Bayanihan Law.