Housing developer 8990 Holdings, Inc. posted a 55 percent increase in net income to P3.65 billion in the first six months of 2022 from P3.46 billion in the same period last year.
In a disclosure to the Philippine Stock Exchange, 8990 President and CEO Anthony Vincent Sotto said that the company was able to sustain revenue levels despite inflationary fears and the rest of the uncertainty from the outcome of the elections to the war in Ukraine.
Gross revenues slightly increased to P10.05 billion in the first half of this year from P10.01 billion in the same period of 2021.
Due to effective expense management, gross margin remains at 50 percent while net margin rose slightly from 35 percent to 36 percent.
As of end-June 2022, 8990 has delivered 5,364 units to homeowners.
The National Capital Region (NCR) accounted for the bulk of total revenues at 54 percent percent, North Luzon and Davao each contributed 14 percent, Cebu and Ormoc 9 percent, Iloilo and Bacolod 7 percent, and South Luzon and General Santos at 1 percent each.
In terms of total units delivered, NCR again accounted for the highest at 37 percent, followed by Iloilo and Bacolod at 17 percent. Davao contributed 16 percent, North Luzon 15 percent, Cebu and Ormoc 9 percent, General Santos 4 percent, and South Luzon 2 percent.
Meanwhile, 8990’s vertical projects contributed a majority of revenues at 60 percent, while Horizontal projects generated 40 percent.
Sotto said he remained confident that 8990 is “well on our way to hitting our target” of P23 billion for fiscal year 2022, as the company has an inventory of 3,292 units worth P3.6 billion in sales across all projects nationwide.
Of this inventory, Bulacan accounts for P963 Million, Davao and General Santos P709 million, Ortigas P708 million, and Iloilo and Bacolod P523 million. Cubao has potential sales of P359 million and Cebu and Ormoc P327 million.
Sotto also reported that 8990 has a land bank of 767.56 hectares (ha) distributed as follows: Luzon 211.14 ha, Visayas 438.08 ha and Mindanao 118.35 ha.
As to potential sales, the Luzon land bank is expected to generate P98 billion, Visayas P67 billion and Mindanao, P6 billion.
“In the next seven to 10 years, we expect to unlock a total of P171 billion in revenues,” Sotto declared.