VisMin developer Cebu Landmasters Inc. reported a 25 percent year-on-year growth in attributable net income to P714 million in the first quarter of 2021 while consolidated net income improved 12 percent to P725.2 million.
In a disclosure to the Philippine Stock Exchange, the firm said consolidated revenues increased 11 percent to P2.35 billion in the first quarter of 2021.
The firm said growth was due to sustained construction activities and the strong sales take-up of its residential projects in key cities of Visayas and Mindanao where quarantine restrictions were less severe.
“CLI’s growth momentum is expected to speed up in the second half of the year as its joint ventures mature for revenue recognition,” said CLI chief operating officer Franco Soberano.
In addition, he said CLI is set to produce fresh inventory in the next three quarters from its 2021 projects remaining in the pipeline. It is set to roll out P14 billion worth of projects this year.
CLI has so far launched three projects from January to March worth P4.9 billion which boosted reservation sales to P3.3 billion or 17 percent more year-on-year.
Sales from its mid-market projects accounted for 66 percent of the total while the balance of 33 percent was attributable to its economic housing brand.
Soberano reported that once lockdown measures were eased towards the end of 2020, CLI quickly responded by stepping up activity to 95 percent in most of its construction sites.
He clarified that mobility issues are no longer pronounced in the Visayas and Mindanao where COVID infections have remained relatively manageable.
Cebu City, the largest metropolis in the South, for instance, was experiencing low infection rates in the past weeks, which its medical facilities could easily address.
Even prior to COVID 19, VisMin’s housing backlog had been consistently underserved. Today, there is a backlog of 800,000 units a year with the industry supplying only 200,000.
Soberano is optimistic that with the rollout of the vaccines, business activity would step up once again paving the way for full economic recovery.
“While there is still considerable work to be done to finally lay this pandemic to rest, we see light at the end of the tunnel and are preparing for improved economic activity. In fact, CLI has set for itself a growth target of 15 to 20 percent this year.”