Mass-housing developer 8990 Holdings, Inc. expects to exceed its pre-pandemic financial performance after both its revenue and net income rose by more than 100 percent in the first half of the year.
In a disclosure to the Philippine Stock Exchange, the firm reported a 133 percent hike in net income to P3.46 billion in the first half of 2021 from P1.48 billion in the same period last year.
Revenues jumped 104 percent increase in the January-to-June period to P10.01 billion from P4.91 billion in the same period last year.
“Our first-half performance reflects the hope and optimism of Filipinos for socio-economic recovery with the successful roll-out of the vaccination program by both the government and private sector,” 8990 Holdings Chairman Mariano Martinez Jr. said.
He added that, “Our resilient people are now again ready to pursue their lifelong dream of having their own homes.”
Martinez noted that the huge increase in its revenue and net profit is not merely due to the low-base effect from last year, as its first half performance alone is already close to matching the company’s P15.4 billion revenue and P5.86 billion net income in full-year 2019.
The firm’s P10.01 billion revenue in the first six months of 2021 is also only P500 million shy of its P10.5-billion total sales revenue in the pre-pandemic January-to-September period in 2019.
The COVID-19 pandemic started in China in the last quarter of 2019, with other countries feeling its impact in early-2020 as governments implement hard lockdowns to contain the spread of the virus.
Sales in the first half of the year came mostly from Luzon at P6.74 billion, or 71 percent of the total. Visayas contributed 15 percent of sales at P1.47 billion while Mindanao’s share was 13 percent at P1.27 billion.
In terms of total units sold over the first half, Luzon accounted for 56 percent or 3,318 units, Visayas at 27 percent or 1,606 units, and Mindanao at 16 percent or 965 units.
While 8990’s gross margin declined from 54.6 percent to 49.5 percent, net income margin improved from 30.2 percent to 34.5 percent from the first half of 2020 to the same period this year.
With these results for the first half, Martinez declared that, despite the lingering effects of the pandemic, 8990 will continue to “perform well for the remainder of the current fiscal year.”