DMCI Homes, one of the country’s leading mid-income segment developers, is aiming to stage a strong bounce-back in the second half of the year with the completion of ten building towers after earnings fell in the first nine months of 2020.
From January to September, the company’s earnings fell 73 percent from P1.9 billion in 2019 to P505 million this year due to the combined effect of lower construction accomplishments and one-time losses from sales cancellations for a project.
In booked a 23 percent drop in consolidated revenues from P14.7 billion to P11.3 billion.
However, for the third quarter alone, DMCI Homes saw a 68 percent surge in net income from P626 million in 2019 to P1 billion this year mainly due to lower construction costs. It registered P5.7 billion in revenues for the third quarter, flat compared to last year.
The ten buildings targeted for completion in the second semester are part of Mulberry Place, Lumiere Residences, Calathea Place, Sheridan Towers, Alea Residences and Oak Harbor Residences—the company’s first premium development.
With a combined 4,088 residential units, the ten projects have a total sales value of P13.9 billion. Over 3,500 of the units have been sold.
“The pandemic really battered our productivity. Our projects got delayed by one to three months because of the 76-day work stoppage in the first semester,” said DMCI Homes president Alfredo R. Austria.
He explained that, “Since we follow the percentage-of-completion method for revenue recognition, our booked revenues contracted on lower construction accomplishments.”
To make up for the lost productivity, DMCI Homes has been instituting several operational changes such as the modularization of building components, bathroom systems and sanitary lines. It also set up batching plants in key areas to fast-track its concrete pouring activities. As a way to reduce tardiness and absenteeism among its workers, DMCI Homes expanded its onsite barracks capacity by 59 percent to accommodate 4,941 workers. It also offers bike loans to qualified workers to enhance their personal mobility.