8990 Holdings bumps up revenue, earnings in Q3

MANILA, Philippines — Property developer 8990 Holdings Inc. benefited from the continued easing of pandemic restrictions and the reopening of the local economy as its financial performance improved markedly in the third quarter this year.

In a statement, 8990 said total revenues climbed by 30 percent to nearly P7 billion, from P5.34 billion in the comparable period last year, while net income rose by 34  percent to P2.645 billion from P1.972 billion a year ago.

As a result, earnings per share jumped by 49 percent to P1.34 from P0.90 in the same quarter last year.

The outstanding results for the third quarter also significantly boosted the calendar-year results of the country’s leading affordable developer by double digits.

For the nine months to September, the firm’s total revenues grew by 10.93 percent to P17.03 billion from P15.35 billion in the same period last year. Net income also jumped by 15.93 percent to P6.294 billion from P5.43 billion. Earnings per share, meanwhile, increased by 16 percent to P1.17 from P1.01.

“Our margins reflect our healthy financial position with gross margin at 53 percent by the end of September and net margin at 37 percent,” said 8990 president and CEO Anthony Vincent Sotto.

These were an improvement from the 50 percent gross margin and 35 percent net margin for the first nine months of 2021.

8990 delivered 8,882 additional homes during the nine-month period, with 72 percent of revenues contributed by Luzon, mainly from the Urban Deca Homes Ortigas project. Mindanao accounted for 15 percent, and Visayas 13 percent.

In terms of units, Luzon accounted for 56 percent of total units delivered, followed by Visayas at 23 percent and Mindanao at 22 percent.

8990’s high-rise building projects continued to be popular among homebuyers, as this business segment contributed 59 percent of total revenues, with the 41 percent balance going to horizontal projects.

Sotto said in the coming years, 8990 can expect more revenues from Urban Deca Homes Banilad in Mandaue City, Cebu and the new Deca Homes Pampanga Phase 1 project as turnover schedules are met.

“On top of our current land bank, we are also  in the process of unlocking the value of several properties nationwide through our 16 ongoing projects,” he said. As of the end of the quarter, 8990’s land holdings stood at 704.66 hectares, with potential sales value of P155 billion.