8990 sustains 2021 record performance in Q1
8990 sustains 2021 record performance in Q1
By JAMES A. LOYOLA
The country’s leading mass housing developer 8990 Holdings, Inc. posted high double-digit growth rates in the first quarter as the economy continues to rebound from the effects of the COVID-19 pandemic.
In a disclosure to the Philippine Stock Exchange, 8990 said its unaudited net profit roe 22.7 percent to P1.9 billion in the first quarter of 2022 from P1.55 billion earned during the comparative period last year.
Unaudited gross revenues from real estate sales grew 16.11 percent to P5.20 billion for the period ended March 31, 2022 from P4.48 billion during the same period last year.
Including Other revenues such as those from hotel operations and rental income, 8990’s total gross revenues increased by 16.70 percent to P5.22 billion from P4.48 billion.
The strong results were attributed by 8990 President & CEO Anthony Vincent Sotto attributed to the renewed confidence of Filipinos in their future revenue streams and the continued high demand for mass housing.
He added that the easing of lockdowns contributed to the overall improvement of the business climate as COVID-19 vaccination rates go higher nationwide.
“We are hopeful that the confidence of homebuyers in our key mass housing market will grow even stronger for the rest of the year,” Sotto declared.
For 2021, 8990 Holdings reported that it had exceeded its pre-pandemic performance with net income improving 23 percent to P7.21 billion — the highest ever in the company’s history – from P5.86 billion in 2019.
The past year’s net profit is also a huge 49 percent bump over the net profit of P4.83 billion in 2020, when the COVID-19 pandemic’s effects had started to be felt locally.
Gross real estate sales, 8990 registered a milestone P20.33 billion in revenues for 2021 — 36 percent higher than the P15 billion registered in 2019. Last year’s top line was also a 43.5 percent surge over the previous year’s figure of P14.17 billion.
With these record top line and bottom line figures, Sotto said the company definitely “defied all the odds” despite a two-year long pandemic and a severe typhoon that crippled the Visayas region — one of its main markets for mass housing.
He said these figures reflect “the strong demand for affordable housing, optimism of our buyers in the economy and their confidence in the stability of their future revenue streams.”
The firm delivered 11,564 units to Filipino homebuyers last year. Metro Manila accounted for 45 percent of revenues, followed by the rest of Luzon with 22 percent. Visayas projects accounted for 20 percent while Mindanao filled the 13 percent balance.
In terms of total units, Metro Manila again garnered the highest at 32 percent. Luzon, Visayas and Mindanao accounted for 23 percent, 29 percent and 16 percent respectively.
Vertical or condominium developments accounted for 41 percent of revenues, while horizontal or subdivision developments made up the bulk of revenues at 59 percent.
Meanwhile, mass housing or horizontal projects made up most of the total units delivered during the past year, at 55 percent.
Sotto promised shareholders that 2022 will be “another full year of milestones” as the company expects to duplicate its pre-pandemic exponential growth rates in the high double digits, to take advantage of the continued and strong demand for mass housing.