Mass housing builder 8990 Holdings Inc. reported net income proving flat in the first half of the year to P3.78 billion from last year’s P3.69 billion.
Revenue also came in flat at P10.06 billion, from last year’s P10.05 billion.
8990 president and chief operating officer Anthony Vincent Sotto said the first half had been a period of growth, achievement and valuable learning experiences.
In the April to June quarter alone, company’s income was down 4 percent to P1.69 billion from P1.76 billion while revenue came in at P4.72 billion, also down from P4.79 billion.
The company reported unrealized sales of P4.6 billion as at end-June, with P2.6 billion to be recognized within the year.
“This still keeps us on track in meeting our year end revenue target of P24 Billion,” Sotto said.
Company gross margins slightly narrowed to 48 percent from 50 percent. To address this, Sotto said the company is evaluating its cost structures and supply chain management to optimize the margins moving forward.
He also said the business recently embarked on a strategic shift towards Pag-Ibig Fund financing for most of its projects, driven by its commitment to cater to the growing demand for affordable housing in the country.
“We are confident that as our buyers become more acquainted with the Pag-ibig Financing option, we will witness accelerated revenue recognition in the near future,” Sotto said.
In the first six months, 8990 delivered 6,105 homes. In terms of value, the National Capital Region contributed 52 percent followed by north Luzon with 18 percent, Davao and Iloilo-Bacolod with 10 percent each. The Cebu-Ormoc branch contributed 9 percent, south Luzon only 1 percent and General Santos with 0.17 percent.
In terms of units, its NCR branch delivered 30 percent followed by Iloilo-Bacolod with 22 percent, north Luzon with 21 percent and Davao with 19 percent. The Cebu-Ormoc branches brought in 7 percent while south Luzon had less than 1 percent.
In terms of product type, high-rise buildings generated 56 percent of the total value of units delivered. Mass Housing brought in 36 percent, medium-rise buildings 5 percent while lots contributed 3 percent of the total.
Mass Housing remained the lead contributor with 62 percent, the company said.
