8990 income rises 23% last year

MANILA, Philippines – Listed mass housing firm 8990 Holdings reported a 23 percent growth in earnings to P4.05 billion last year, slightly exceeding its target.

In a disclosure to the Philippine Stock Exchange yesterday, 8990 said gross sales rose 24 percent to P9.65 billion, mainly driven by new projects.

Strong presence, brand acceptance, building innovation and track record of housing delivery in the growth centers of the country such as the National Capital Region, Angeles, Cebu, Iloilo and Davao all contributed to growth, 8990 said.

Its core business income, comprising of housing and contract-to-sell (CTS) net revenues, amounted to P10.7 billion, exceeding its P10 billion goal. The amount represented a 27 percent increase from the P8.4 billion recorded a year ago.

In the fourth quarter alone, 8990’s net income jumped 86 percent to P887 million as sales increased by 67 percent to P2.59 billion.

By projects, 8990 said roughly 85 percent of total revenues came from DECA Homes subdivisions in Cavite, Pampanga, Iloilo, Davao and General Santos while the rest or 15 percent came from medium-rise Urban DECA Homes projects in Cebu and Muntinlupa.

Moving forward, the company sees its net income growing by 20 percent to P4.8 billion this year as it expects revenues to increase by 24 percent to P12 billion.

The mass housing developer is set to launch 14 new projects that will add 75,608 units valued at P7.3 billion to its inventory.

“The projects include horizontal developments under the Deca Homes brand in Bulacan, Iloilo, Cebu, Davao, and Bacolod as well as medium-rise building projects under the Urban Deca Homes in Cavite, Cebu, and Manila,” it said.

It also has 11 ongoing projects that will provide an additional 5,377 units worth P4.8 billion this year.

However, the company expects external threats to the housing industry this year including a potential delay in the release of permits for new projects due to the presidential, national and local elections in May as well as the longer processing of accreditation by the Board of Investments.

The firm also cited the tension in the Middle East particularly between Saudi Arabia and Iran as well as the continued softening of oil prices as factors that could affect the monthly amortization payments of overseas Filipino workers in the petroleum industry as well as seafarers manning the oil tankers.