8990 Holdings bullish on beating pre-pandemic results as income hits P1.9B

8990 Holdings, Inc. said in a regulatory filing on Tuesday that it is “on course to exceeding its pre-pandemic results” as the company’s profits and revenues for the first half of the year surged.

The listed mass-housing developer reported a second-quarter net income of P1.91 billion, soaring from the P138.93 million earned in the same period last year. Its topline climbed by nearly three times to P5.54 billion from P1.42 billion.

For the six-month period ending June, 8990 Holdings posted a 133% profit growth to P3.46 billion from P1.48 billion year on year. This is already more than half of the company’s full-year income of P5.86 billion in 2019.

“Our first-half performance reflects the hope and optimism of Filipinos for socioeconomic recovery with the successful rollout of the vaccination program by both the government and private sector,” 8990 Holdings Chairman Mariano D. Martinez, Jr. said in a statement.

Revenues for the first half increased by 104% to P10.01 billion from P4.91 billion year on year.

“[The company’s] P10.01-billion revenue in the first six months of 2021 is also only P500 million shy of its P10.5-billion total sales revenue in the pre-pandemic January-to-September period in 2019,” 8990 Holdings said.

In 2019, the company generated P15.4 billion in revenues.

The majority or 71% of the company’s sales in the first six months of 2021 are from Luzon, amounting to P6.74 billion. Visayas accounted for 15% at P1.47 billion, and Mindanao made up for 13% of the sales at P1.27 billion.

Luzon also accounted for 56% of total units sold in the first half with 3,318 units, followed by Visayas with 1,606 or 27% of units sold. Mindanao units made up for 16% to total 965 units.

“While 8990’s gross margin declined from 54.6% to 49.5%, net income margin improved from 30.2% to 34.5% from the first half of 2020 to the same period this year,” the company said.

Mr. Martinez expects the company to “perform well” for the rest of the year.

Shares of 8990 Holdings at the stock market rose by 0.55% or four centavos on Tuesday, closing at P7.28 apiece. — Keren Concepcion G. Valmonte

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