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8990 builds up profit in 9 months

MANILA, Philippines – Listed mass housing developer 8990 reported steady income in the nine months to September despite a sharp rise in finance costs and higher cost of sales.

The company posted 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, Januario Jesus Gregorio Atencio, president and chief executive officer of 8990 Holdings said yesterday.

Revenues climbed three percent to P7.18 billion during the period from P6.99 billion a year ago, while cost of sales rose 5.1 percent to P3.15 billion from P2.99 billion.

The company delivered 6,338 housing units during the period, while housing revenues rose three percent to P7.13 billion this year from P6.94 billion last year.

Finance costs of the company surged 64.5 percent to P662.91 million in the first nine months of the year from P402.87 million in the same period last year due to higher interest payment of corporate bonds.

In the third quarter alone, earnings of 8990 Holdings declined three percent to P1.03 billion from P1.06 billion.

Similarly, revenues declined 3.9 percent to P2.45 billion from P2.55 billion.

During the period, the company’s finance costs rose 36.8 percent to P251.71 million from P183.97 million.

Atencio said the latest results are in line with the company’s internal targets for the third quarter and for the first nine months of 2016.

This year, 8990 Holdings aims to grow its net income by 20 percent to P4.8 billion on the back of a 24 percent rise in revenues to P12 billion.

It exceeded its P4 billion profit target last year after it registered a 23 percent growth in earnings to P4.05 billion as gross sales jumped 24 percent to P9.65 billion.

Atencio said the company’s cash flows from operations remained positive with P426.08 million in the third quarter from P118.81 million in the second quarter due to increased levels of Pag-IBIG take-outs, monthly amortization collections on a P21.2 billion contract to sell (CTS) portfolio, and sale of CTS portfolio to banks.

8990 Holdings has beefed up its landbank to 548 hectares with an expected yield of 109,818 units worth P129 billion. It has launched six projects so far this year and is expected to unveil five more in the fourth quarter.

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