8990 Holdings’ net earnings jump 23% to nearly P2B

8990 Holdings, Inc. reported on Tuesday that its first-quarter unaudited net profit jumped 22.7% to P1.9 billion as lockdown restrictions eased.

The home developer posted its “high double-digit” profit growth after it saw a 16.7% rise in gross revenues to P5.22 billion, which includes gains from hotel operations and rental income.

Revenues from real estate sales climbed by 16.1% to P5.2 billion.

8990 Holdings President and Chief Executive Anthony Vincent S. Sotto attributed the firm’s financial performance 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 coronavirus disease 2019 (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,” he said.

In 2021, the company’s audited net profit surged by 49.3% to P7.21 billion from P4.83 billion.

“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,” he added.

The company also reported that it delivered 11,564 units to Filipino homebuyers last year.

Metro Manila contributed 45% of revenues, followed by the rest of Luzon with 22%, Visayas with 20% and Mindanao with 13%.

Horizontal or subdivision developments made up the bulk of revenues at 59%, with vertical or condominium developments accounting for 41%.

Mr. Sotto said that the company’s target of P164 billion in potential sales over the next seven to eight years is possible through its projects in the pipeline across 729.05 hectares of land bank in key locations nationwide.

He added that the company’s upcoming projects will meet the needs of its key mass housing client base.

Mr. Sotto sees 2022 to be “another full year of milestones” as the company expects to duplicate its pre-pandemic exponential growth rates “in the high double digits” amid continued and strong demand for mass housing.

The company has six wholly owned subsidiaries, namely: 8990 Housing Development Corp.; 8990 Luzon Housing Development Corp.; 8990 Mindanao Housing Development Corp.; 8990 Davao Housing Development Corp.; 8990 Leisure and Resorts Corp.; and Fog Horn, Inc.

At the stock exchange, 8990 Holdings shares climbed by 1.74% or 18 centavos to close at P10.50 apiece on Tuesday. — Luisa Maria Jacinta C. Jocson