PROPERTY developer 8990 Holdings, Inc. said on Tuesday it remains bullish on its prospects for the full year even after its first-half net income for 2017 dropped 44 percent compared to last year.
The company said its net income for the first six months declined 44 percent to P1.221 billion from P2.181 billion recorded in the same period last year as there was a double-digit decrease in revenues.
“Mainly because of a drag of 36 percent from revenues, which hit P3 billion in the first half of 2017,” said Investor Relations head Tracy Ilagan during her presentation.
“Now if you compare it with our target, we actually targeted something lower, we’re just 5 percent off from the top line and 6 percent from the bottom line,” Ilagan said.
Revenues fell 36 percent in the first half from P4.7 billion last year, mainly due to continuing delays in the new projects’ licenses, labor shortages in the construction finishing. and the momentum build-up of recently launched projects.
“We’ve already anticipated a slow start to 2017, given, historically, a change in government normally leads to a temporary disruption in our growth as a result of these political changes. And the change of government in 2016 is no exception,” Chief Executive Officer Januario Atencio said.
“But what is important to realize is that 8990 has always been able to adapt to change quickly, instituting reforms and innovations needed to confront these issues, allowing us to bounce back strongly, pushing the company to new and greater highs in the years to come,” he added.
Sales reservations rose 3 percent year-on-year as more projects have been launched this year. Last year, only six of the 14 planned projects were launched while for the first half of 2017, five projects have already been launched. 8990 expects to launch six more by the end of the year.
8990 launched a total of 32,992 units in the first six months. These include units in Deca Homes Marilao in Bulacan, Deca Homes Mulig in Davao, Deca Homes Pavia Resorts and Residences Phase 2 in Iloilo, Deca Homes Santa Barbara in Iloilo and South of Bacolod in Bacolod.
The company expects to add 27,772 units by the end of the year in the Visayas and Mindanao areas.
8990 said it remains firm to its commitment to improve liquidity as cash generation activities in the first half reached a new high, with Home Development Mutual Fund takeout payments hitting a record breaking P2.3- billion. This translates to 2,229 units taken out under the provident fund’s housing loan program. Another 584 units are expected to be taken out under HDMF.
8990 Holdings is a real estate firm engaged in the development of low-cost mass housing and mid-income housing units.