CLI on track to exceed earnings growth target

Cebu Landmasters, Inc. (CLI) posted an attributable income of P535.96 million in the third quarter, bringing the nine-month figure to P1.85 billion.

In a statement, CLI said its nine-month net attributable income has already surpassed its full-year income of P1.845 billion. For the period ending September, the profit was 23% higher than the P1.5 billion posted during the same period in 2020.

Consolidated revenues grew 34% to P7.66 billion as of end-September.

In a separate statement, the company said the higher revenues was attributed to “robust sales” and rapid construction progress of its projects as sites are operating at 100%.

CLI said majority of its third quarter revenues were attributed to its Casa Mira brand at 44%, while the mid-market Garden Series accounted for 30%, and its high-end Premier Masters accounted for 24%.

“We are poised to exceed the yearend earnings guidance [of] 15% to 20% that we gave earlier this year,” CLI Chief Operating Officer Jose Franco B. Soberano said in a briefing on Thursday. CLI previously said that they want to exceed the P8.3 billion consolidated revenues reported in 2020.

The company said gross profit margins are “under a little bit of pressure” due to input costs from the higher price of raw materials but this has been offset by its sales.

“We have not pushed out price increases to the buyers but it is something that we are looking at very carefully in order to preserve our sales momentum as well,” CLI Chief Finance Officer (CFO) Beauregard Grant L. Cheng said during the briefing.

The company sold out 74% of all of seven project launches in 2021, which are collectively worth P12 billion.

Meanwhile, in all of its projects, the company said it already sold out 90% of its inventory.

For the fourth quarter, CLI will be launching over five more projects collectively worth P7.2 billion with 2,541 units.

In Davao, CLI is looking to launch P1.5-billion Velmiro Heights, which will add 362 units to its inventory. It will also open Casa Mira Homes, worth P2.3 billion with 837 units.

The company will also launch a P1.3-billion Casa Mira Towers condominium in Bacolod, which will have 723 units.

Over in Cebu, the company aims to launch 325-unit BL Ramos condo worth P1.1 billion. It also said it plans to introduce its first beachfront condominium project, Costa Mira Mactan Cebu, worth P1 billion with 294 units.

CLI said it has so far spent P8.7 billion in capital expenditures, P1.2 billion of which were spent for land acquisitions.

CLI’s CFO Mr. Cheng said they are looking at earmarking P13 billion to P14 billion for 2022, which is in line with the company’s plans for project launches and strategic landbanking activities.

In total, the company has 105 hectares in its landbank so far, after buying 40 more hectares during the period. CLI said it is in talks to acquire an additional 70 hectares.

CLI shares at the stock exchange went up by 2.44% or seven centavos to close at P2.94 apiece on Friday.