8990 posts 30% income growth

MANILA, Philippines - Veteran mass housing developer 8990 Holdings Inc. posted a 30 percent growth in net earnings in the first quarter of the year, amounting to P933.6 million or P216.9 million higher compared to the P716.7 million booked for the same period last year.

8990 president and CEO Januario Jesus Atencio attributed the revenue increase to the successful launching of their new project - DECA Homes Indangan in Davao City, as well as the increased sales in their other on-going DECA Homes projects located in Angeles, Cebu, Gen. Trias, and Iloilo cities.

Atencio noted that since 2011 when their innovative CTS in-house financing program was launched, the company has been experiencing growth of at least 30 percent per year. “From the first quarter performance, it’s looking like another banner year for 8990. This growth trend has become attainable for us due to our fast pre-cast construction technology, our accessible CTS program, strengthened by our pro-active comprehensive credit and collection platform,” he said.

The higher profits came at the heels of a 22.3 percent jump in sales to P1.92 billion in the first quarter of the year from P1.57 billion in the same period last year. Gross and net income margins for the first quarter also increased to 62 percent and 48 percent, respectively of gross revenues.

The company recently raised P9 billion through the follow-on listing of 862.19 million primary shares, 382.36 million secondary shares, and an overallotment option of 134.95 million shares at P6.50 per share where two top global funds – US based TPG Capital and Khazanah Nasional Berhad, the sovereign wealth fund of Malaysia emerged as the anchor investors buying at least 60 percent of the listing.