Mass housing developer 8990 Holdings Inc. reported Tuesday a 23-percent rise in net income in 2015, even surpassing its P4-billion full-year target, amid strong sales and increased construction capacity.
In a disclosure to the Philippine Stock Exchange, the listed firm said it booked a net income of P4.05 billion in 2015, which was P746 million more than its net of P3.31 billion in 2014.
For the fourth quarter alone, 8990’s net income surged 86 percent to P887 million from P477 million in the same quarter of 2014.
8990’s fourth-quarter sales shot up 67 percent to P2.59 billion from P1.55 billion in the comparative period in 2014.
The company said its 2015 gross sales rose 24 percent to P9.65 billion from the previous year’s P7.79 billion, driven by strong sales of its horizontal housing developments across the country.
8990 attributed its robust performance to its “strong presence, brand acceptance, building innovation and track record of housing delivery in the growth centers of the country—NCR, Angeles, Cebu, Iloilo and Davao.”
The firm said its core business income—comprising housing and contract-to-sell revenues—breached the P10-billion it set last year.
8990’s housing operations registered P10.7 billion revenues in 2015, 27-percent higher from the P8.4 billion posted a year ago.
CTC receivables earned the company P1.9 billion in 2015, or a 33-percent jump from P900 million in 2014.
The firm said about 85 percent of its total 2015 revenues came from DECA Homes subdivisions in Cavite, Pampanga, Iloilo, Davao, and General Santos, while 15 percent is attributed to 8990’s medium-rise Urban Deca Homes projects in Cebu and Muntinlupa City in the capital region.
“Sales reservations of Deca Homes nationwide totaled 10,077 units, an increase of 1,912 units from last year’s 8,165 units, representing a year-on-year growth rate of 23 percent,” the company said.
The company said it delivered 7,456 housing units worth P8 billion to homeowners in 2015, plus an additional 1,399 resale units worth P1.5 billion.
8990 said it expanded its land bank by 499 hectares in 2015, as it acquired parcels of land in Davao, Iloilo, Bacolod, Las Pinas, and Cubao in Quezon City.
For 2016, the mass housing developer sees its net income growing by 20 percent to P4.8 billion, on the back of an expected 24-percent increase in revenues to P12 billion.
The firm said it is set to launch 14 projects this year, expecting to put up 75,608 units worth P7.3 billion.
Thee projects include horizontal developments under its Deca Homes brand in Bulacan, Iloilo, Cebu, Davao, and Bacolod, as well as medium-rise buildings under the Urban Deca Homes projects in Cavite, Cebu, and Metro Manila.
8990 said these are on top of its 11 ongoing projects, would provide an additional 5,377 units worth P4.8 billion this year.