Mass housing developer 8990 Holdings Inc. registered nearly flat net income growth of just 1 percent for the first nine months of the year, resulting from project delays during the period, the company said in a media briefing on Friday.
8990 said it posted a net income of P3.19 billion in the January to September period, one percent higher than the P3.17 billion recorded for the same period last year.
Revenues performed slightly better, growing 3 percent for the nine-month period at P7.18 billion compared with P6.99 billion a year ago.
The company attributed the slower growth to a number of factors that caused delays in project completions and launches during the period, including delayed permits, the lack of skilled labor, and weather conditions.
“[There were] only 50 percent sunny buildable days, which slowed the ramp up of on going and recently launched projects, specifically in Luzon,” the company said.
On a quarterly basis, the company’s net income slipped by 3 percent to P1.03 billion in the third quarter of the year from P1.06 billion in the previous year.
Revenues during the period similarly declined by 3.9 percent to P2.45 billion from P2.55 billion.
Despite the delays affecting the operations of the company, 8990 noted that it exceeded its target of unit deliveries in the first nine months of the year, which was set at 6,548 units with a total value of P6.1 billion. The company delivered a total of 6,566 units worth P7.1 billion during the period.
This was driven by the strong performance in the Visayas and Mindanao region, according to the company.
8990 President and Chief Executive Officer Januario Jesus Atencio said in a statement that despite the lower growth for the nine-month target, the company remains on track with its growth target.
“This is at par with our internal targets for the third quarter and for the first nine months of 2016,” Atencio said.
8990 noted that it sees its net income growing by 20 percent to P4.8 billion on the back of a 24 percent rise in revenues to P12 billion.
In 2015, the company exceeded its P4 billion profit target after it registered a 23 percent growth in earnings to P4.05 billion as gross sales jumped 24 percent to P9.65 billion.
At present, the company’s land bank totals 548 hectares, which are expected to yield to a total of 109,818 units worth P129 billion.
8990 launched a total of six projects in the first nine months of the year and expects to launch five more in the last quarter of 2016.