Housing firm 8990 Holdings Inc. reported a 21 percent drop in net income to P3.3 billion in the first nine months of the year as revenue generation was affected by the quarantine measures imposed nationwide.
In a disclosure to the Philippine Stock Exchange, 8990 said revenue for the first nine months of 2020 hit P9.7 billion, 7% lower than the previous year as a result of a weak second quarter due to the lockdowns imposed in varying degrees across the country.
However, for the third quarter, 8990 posted its highest-ever quarterly revenue of P4.8 billion, a 38 percent increase from last year’s P3.5 billion.
Gross revenue for the third quarter of 2020 alone almost equals the P4.9 billion reported during the first half of 2020. This translates to a net income of P1.8 billion.
The firm also reported that, the lockdowns and the Bayanihan Act negatively affected collections during the second quarter but a rebound in collection is expected by the end of the year.
“After we felt the impact of four consecutive months of lockdown in the first half of this year, I am happy to report that we registered a very strong third quarter, our highest quarterly performance in the 17 year history of 8990,” said 8990 Acting President Alexander Ace Sotto.
He added that, “Our performance for this period shows the resilience of the affordable housing sector and affirms the need to fill the ever- growing housing backlog in the Philippines.”
Total homes delivered by the Company during the third quarter reached 3,083 units from its affordable housing projects across the country.
Its strong housing delivery in the third quarter almost matched the 6 months’ worth of homes sold from January to June 2020. This brings the total number of houses delivered in the first nine months to 6,794 units.
Of the total number of units delivered, 53 percent was in Luzon, 27 percent in Visayas, and 20 percent in Mindanao. In terms of project type, horizontal projects brought in 53 percent while vertical projects
contributed 47 percent of the total housing units delivered. “This global pandemic has added pressure to businesses in all industries including ours. Since March of this year, we have been working on adjusting to this new reality by closely monitoring and managing our liquidity, strengthening our organization, and finding better ways to reach out to our existing and potential buyers,” said Sotto. Reference Link: Manila Bulletin