Mass housing developer 8990 Holdings Inc. posted a 10-percent increase in net income for the first quarter of the year on the back of higher housing unit sales.
In a financial report to the Philippine Stock Exchange on Tuesday, the company said it made a net income of P1.032 billion in January to March from P937 million a year earlier.
Consolidated revenue amounted to P2.176 billion, a 10.5 percent increase from P1.97 billion in the same comparable year.
“The increase was mainly attributable to increased sale in the company’s low cost, mass housing segment,” 8990 Holdings said.
Revenue from housing operations amounted to P2.51 billion, up 14 percent from P2.21 billion.
The company exceeded by 4 percent its target of delivering 1,935 units and was able to deliver of 2,003 units in the first three months of the year.
The turnover was valued at P2.17 billion, up 22 percent from its target of P1.78 billion.
“In terms of housing value, Luzon contributed 26 percent of the total revenue, with Visayas at 32 percent, and Mindanao at 42 percent,” the company said.
The developer also bought 76.24 hectares of land, bringing its total landbank at 553 hectares valued at P112 billion.
The newly purchased land includes a 2.84-hectare lot in Otis, Manila; a 3.40-hectare lot in Las Piñas; and a 70-hectare lot in San Miguel, Iloilo.
The cost of sales and services during the quarter amounted to P946 million, up 14.8 percent from P824 million year-on-year.
“The increase was mainly attributable to increases in costs of sales in the company’s low-cost mass housing segment, consistent with the growth of this segment,” 8990 Holdings noted.
The company registered total current assets of P9.9 billion against total current liabilities of P5.9 billion.