Housing developer 8990 Holdings Inc. reported that its first half net income inched up 2.5 percent to P3.79 billion in 2023 from the P3.69 billion earned last year.

In a disclosure to the Philippine Stock Exchange, the firm said gross revenues from January to June 2023 was also almost flat at P10.07 billion from P10.05 billion in the same period last year.

However, 8990 said this is still “a significant feat amidst the prevailing economic environment, showcasing in no small measure, the resilience and dedication of the company’s team to drive consistent growth.”

“The first half of 2023 has been a period of growth, achievement, and valuable learning experiences. Together, we have surpassed financial milestones, demonstrated adaptability, and strengthened our position as a leading player in the industry,” 8990 Holdings President and CEO Anthony Vincent Sotto said.

He added that, “as we embark on the next phase of our journey, I am confident that we will overcome any obstacles that come our way and continue to achieve greater heights.”

The firm said it attained unrealized sales of P4.6 billion as of end-June with P2.6 billion to be recognized within the year. “This still keeps us on track in meeting our year end revenue target of P24 Billion,” Sotto noted.

However, the company’s gross margins slightly narrowed from 50 percent to 48 percent. To address this, Sotto said the company is evaluating its cost structures and supply chain management to optimize gross margins moving forward.

“On a positive note, our Net Income Margin demonstrated improvement, standing at an impressive 38 percent in the first half of 2023, compared to 37 percent last year,” he said

Sotto added that, “this is a testament to our focus on efficiency, prudent financial decision-making, and delivering value to our customers and shareholders alike.”

8990 Holdings recently embarked on a strategic shift towards Pag-ibig Financing for most of its projects. The decision was driven by the company’s commitment to cater to the growing demand for affordable housing in the country.

“While the transition has been ongoing, we understand that recognizing revenue from these projects may require some time as our buyers adapt to this financing scheme,” Sotto said.

He added that, “despite the transition, the demand for affordable housing remains remarkably high. Our projects have received a positive response from prospective buyers, reaffirming the need for quality, affordable homes in the market.”

“We are confident that as our buyers become more acquainted with the Pag-ibig Financing option, we will witness accelerated revenue recognition in the near future,” Sotto said.

In the first six months of 2023, 8990 Holdings delivered a total of 6,105 homes. In terms of value, the National Capital Region (NCR) brought in 52 percent followed by North Luzon with 18 percent, Davao and Iloilo/Bacolod with 10 percent each. 

The Cebu/Ormoc branch generated nine percent. Meanwhile, South Luzon contributed one percent and Gensan 0.17 percent.

In terms of units, the company’s NCR branch delivered 30 percent of the total followed by Iloilo/Bacolod with 22 percent, North Luzon with 21 percent and Davao with 19 percent. 

Cebu/Ormoc branches brought in seven percent of the total. South Luzon was less than one percent.

In terms of product type, High-Rise Buildings (HRBs) generated 56 percent of the total value of units delivered. Mass Housing brought in 36 percent, Medium-Rise Buildings (MRBs) was at five percent, while Lots contributed three percent of the total.

From a per unit basis, Mass Housing was still the leading contributor to the total with 62 percent followed by HRBs with 33 percent and MRBs with five percent.