CLI POSTS P2.1 BILLION REVENUES

Cebu Landmasters (CLI), a  leading residential developer in VisMin  today reported solid Q1 2020 growth of 13 percent year-on- year in consolidated revenues from Php 1.87 billion to Php 2.1 billion in a disclosure to the Philippine Stock Exchange.

The increase in revenue was driven by robust sales from various segments and sustained construction of new developments alongside growing contributions from its expanding recurring business. Net income to CLI shareholders came in at Php 572 Million. CLI’s gross profit margin of 50% and net income margin of 31% for the year is within the company’s target ratios and above industry average.

During the first five months of the year, the company registered Ph 4.8 billion in reservation sales take-up or close to its 1H 2019 level of Php 5.26 billion. Sales of Php 2 billion driven by its economic housing brand Casa Mira were recorded in the months of April and May, a period widely forecast to have little economic activity. Over-all, CLI’s unsold inventory is down to only 10% of total inventory.

“We expect demand for quality housing and residential units to rise prompted by the greater desire for safer and better planned living environments in the aftermath of COVID 19. Over the years, CLI has built a reputation for offering great value to its buyers and is ideally positioned to serve this rising demand,” Soberano said.

To fund these expansions, Cebu Landmasters has secured Php 8 billion worth of corporate notes and several bilateral facilities with major banks, tailored per project. CLI’s incremental cost of borrowing is between 3.8% to 4.2% for 5-, 7- and 10-year money, making it well positioned to manage its balance sheet, lower its financing costs and having sufficient resources to allocating funding for judicious capital expenditures.

“CLI is moving forward with both prudence and conviction. We will still be launching over 13 projects total this year, especially in key segments with sustained demand including economic vertical and horizontal housing. VisMin will recover faster, as restrictions have eased sooner with strong measures in place. There is sustained demand amidst a low supply environment in key Vismin cities, as evidenced by our P 2 billion sales take-up over April to May.