TWO listed property developers booked higher earnings last quarter on the back of higher revenues, according to unaudited financial statements they submitted to the bourse yesterday.
Villar-led Vista Land & Lifescapes, Inc.’s net income grew by 7.02% to P1.22 billion in the April-June period from P1.14 billion a year ago. This as revenues increased by 19.05% to P5.25 billion from P4.41 billion, while cost and expenses surged 25.86% to P4.04 billion from P3.21 billion.
Second-quarter data drove profit to P2.57 billion in the first semester, up 17.89% from P2.18 billion in the same six months last year.
“The earnings jump came on the back of revenue growth of 20%,” the company said in a statement attached to a disclosure.
Revenues in the first half climbed 21.34% to P10.52 billion from P8.67 billion, while the cost and expenses rose 22.97% to P7.87 billion from P6.40 billion.
In a briefing in Makati City, Vista Land Chief Financial Officer Ricardo B. Tan, Jr. said the company launched 19 projects in the first half — most of them under the “affordable” segment of Camella Homes — worth P12.3 billion.
Mr. Tan said the company plans to launch P15 billion worth of projects which “vary in size” this semester.
Mr. Tan added the company raised P6 billion “in the second semester” from a five-year loan agreement “with two banks.” “It will be part of the capex,” he said.
The company plans to spend P18.6 billion this year, with nearly P10 billion allotted for project launches and the rest for land acquisition. The company spent around P12 billion last year.
Mr. Tan said the company is on track to meet targets.
“In terms of revenues we are looking at P20 billion, and in terms of income we are looking at P5 billion,” he said.
Projections are higher than the P17.40-billion revenues and the P4.37-billion net income actually realized last year.
Meanwhile, Century Properties Group, Inc. grew its net income by 13.11% to P555.4 million last quarter from P491.0 million a year ago.
This as revenues rose 9.35% to P2.69 billion from P2.46 billion, while cost and expenses increased 6.67% to P1.92 billion from P1.80 billion.
Second-quarter results sent net income to P1.06 billion in the first semester, up by 6.57% from P944.5 billion in the same period last year.
Revenues climbed 7.09% to P5.29 billion from P4.94 billion, while cost and expenses rose 4.11% to P3.80 million from P3.65 million.
“Execution of the company’s business strategy of having innovative and co-branded projects with renowned designers resulted in Century to be on track to meet its full-year pre-sales target of P24 billion, with a 16% jump in pre-sales earnings to P6.3 billion in the second quarter of 2013 compared to the same period last year,” the company said in a statement.
Yesterday, shares of Vista Land shed six centavos or 1.00% to close at P5.95 apiece yesterday from P6.01 last Wednesday, while those of Century Properties lost three centavos or 2.21% to P1.33 per share.
Source: Businessworld Online | August 15, 2013