Monday, November 10, 2014
8990 Holdings, Inc., known for mass housing projects, delivered a report citing their net income at P2.8 billion. Incurred over the first nine months of the year, the figure represents a spike of 34.8 percent from the previous year's P2.1 billion.
Sales, likewise, enjoyed a 44.9 percent upsurge within the same time period, amounting to P6.33 billion. Last year's figure capped at P4.37 billion.
Sales of low-cost housing increased 42.06 percent, going from P3.88 billion to P5.5 billion. Sales of medium-rise buildings, going from P398 million to P652 million, jumped by 63.77 percent.
Operating expenses, meanwhile, rose to P1.02 billion from P663.4 million, marking a sharp ascent of 53.8 percent.
“With first three quarters’ gross earnings of P6.16 billion, we are clearly on track to keep our commitment to end this year with P7.6 to P8 billion in gross income with at least 60 percent gross margin, and a net income of P3 to P3.2 billion in net earnings with at least 40 percent net margin,” stated Januario Jesus Atencio, the company’s president and CEO.
The growth, according to Atencio, comes from the bullish economy, with the real estate climate characterized by rising shares. The company has also positioned itself to become a major player in the affordable housing market.
“Externally, we believe that our consistent GNP growth, OFW remittances and the growth in the BPO/call center/IT sectors have meant bigger disposable incomes for the middle and lower levels of our social pyramid that ultimately provides the basis for increased home sales amidst the 4 million backlog in affordable housing,” Atencio expressed.
With an acquisition of 85.3 hectares of land as of June of this year, the developer's landbank currently consists of 335 hectares overall.