8990 Holdings Beats Pre-pandemic Performance as Net Income Surges 133% in 1H

8990 Holdings, Inc. (PSE: HOUSE) is well on course to exceeding its pre-pandemic results after its key revenue and net income indicators both soared by more than 100% in the first half of the year.

The country’s leading mass-housing developer reported a 104% increase in revenues in the January-to-June period to PhP10.01 billion from only PhP4.91 billion in the same period last year. This allowed the company to chalk up a 133% hike in net income after tax to PhP3.46 billion in the six-month period from PhP1.48 billion in the same period last year.

“Our first-half performance reflects the hope and optimism of Filipinos for socio-economic recovery with the successful roll-out of the vaccination program by both the government and private sector. Our resilient people are now again ready to pursue their lifelong dream of having their own homes,” 8990 Holdings Chairman Mariano Martinez Jr. said.

Mr. Martinez noted that the huge increase in its revenue and net profit is not merely due to the low-base effect from last year, as its first-half performance alone is already close to matching the company’s PhP15.4-billion revenue and PhP5.86-billion net income in full-year 2019. 8990’s PhP10.01 billion revenue in the first six months of 2021 is also only PhP500 million shy of its PhP10.5-billion total sales revenue in the pre-pandemic January-to-September period in 2019. The COVID-19 pandemic started in China in the last quarter of 2019, with other countries feeling its impact in early-2020 as governments implement hard lockdowns to caintain the spread of the virus. 8990’s sales in the first half of the year came mostly from Luzon at PhP6.74 billion, or 71% of the total. Visayas contributed 15% of sales at PhP1.47 billion, while Mindanao’s share was 13% at PhP1.27 billion.

In terms of total units sold over the first half, Luzon accounted for 56% or 3,318 units, Visayas at 27% or 1,606 units, and Mindanao at 16% or 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. Likewise, earnings per share more than doubled from PhP0.27 to PhP0.64 for the first six months of 2021. With these outstanding results for the first half, Mr. Martinez declared that despite the lingering effects of the pandemic, 8990 will continue to “perform well for the remainder of the current fiscal year.”