Cebu Landmasters posts ‘highest’ first-half profit in 2022

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Metro Manila (CNN Philippines, August 12) – Cebu Landmasters Inc. (CLI) raked in ₱1.55 billion from January to June 2022, its “highest” first-half net income performance yet, it said Friday.

The 40% year-on-year jump came amid strong sales and project completions, said the listed Visayas and Mindanao developer. For instance, real estate sales climbed to ₱7.36 billion, up 45% annually.

“All other business units continued to improve performance as the firm fast-tracked construction and strengthened operations. These resulted in higher percentage of completion, paving the way for more units to qualify for revenue collection,” said CLI, also reporting a “healthy” gross profit margin of 45%.

Cebu accounted for 40% of first-half revenues, followed by Davao, Cagayan de Oro, Iloilo. Also among CLI’s revenue sources were Ormoc, Bacolod, Dumaguete, and Bohol.

The developer also reported a 20% growth in its leasing business, driven by the healthy rebound in office demand and retail foot traffic especially in Cebu.

“With heightened tourism activity accompanied by increased mobility in Vismin, CLI’s hospitality business registered a 271% growth as occupancy rates significantly improved,” added the firm.

CLI’s capital expenditures (capex) hit ₱5.5 billion during the stretch, 42% higher year-on-year. Its capex for the entire year is expected reach ₱13 billion.

“With our expanding portfolio and with our operations tailored to provide the strongest ‘ground game’ in the region, CLI is best-positioned to address the growing housing backlog while extending best-in-class turnaround times and customer service,” said CLI chairman and chief executive officer Jose Soberano III.

Soberano said CLI is on track to hit its growth guidance of 20% this year – marked by different stages of development for large-scale townships in Davao, Cagayan de Oro, and Minglanilla in Cebu.