The Market Monitor Minding the Nation's Business
Leading mass-housing developer 8990 Holdings Inc. posted a flat profit in the first three quarters of 2016 amid the sharp rise in finance costs and higher cost of sales.
8990 President and Chief Executive Januario Jesus Gregorio Atencio reported a net income of P3.19 billion from January to September this year, up one percent from the P3.17 billion booked in the same period last year.
Atencio said revenues climbed 3 percent to P7.18 billion from P6.99 billion, while cost of sales rose 5.1 percent to P3.15 billion.
For the third quarter alone, the earnings of 8990 Holdings slipped 3 percent to P1.03 billion, while revenues also declined 3.9 percent to P2.45 billion.
“This is at par with our internal targets for the third quarter and for the first nine months of 2016,” he said.
Housing units delivered inched up by 2 percent to 6,338 in the first nine months of the year from 6,443, translating to a 3-percent increase in housing revenues to P7.13 billion from P6.94 billion.
A total of 5,676 fresh units were delivered to new homeowners nationwide, with the Visayas accounting for 45 percent; followed by Mindanao with 36 percent, and Luzon with 19 percent.
In terms of value, Visayas contributed 50 percent, followed by Mindanao with 31 percent, and Luzon with 19 percent.
8990 Holdings is optimistic about growing net income by 20 percent to P4.8 billion on the back of a 24-percent rise in revenues to P12 billion.
It expects to realize majority of sales during the latter part of the year.
It has launched six projects so far this year and is expected to launch five more in Iloilo, Cebu and Bacolod in the fourth quarter.
8990 Holdings has beefed up its landbank to 548 hectares with an expected yield of 109,818 units worth P129 billion.
It exceeded its P4-billion profit target last year after it registered a 23-percent growth in earnings to P4.05 billion.
The developer is riding on the country’s strong private consumption that continues to fuel strong economic growth.