Q2 2024 Cebu Landmasters Inc Earnings Call Transcript
Key Points
- Cebu Landmasters Inc (PHS:CLI) reported a 24% increase in parent net income after tax, reaching PHP1.7 billion.
- Consolidated revenue grew by 24% year-on-year, driven by strong sales across all segments.
- The company achieved a 94% sell-out status across various stages of development, indicating strong demand.
- Improved debt-to-equity ratio from 1.83 times to 1.49 times due to the successful issuance of preferred shares.
- Expansion of recurring revenue projects, including three new hotel openings, is expected to drive future growth.
- Gross margins experienced a dip quarter-on-quarter, attributed to timing and inflationary pressures.
- The company is sensitive to rising interest rates, which have increased the cost of capital.
- CLI's business model relies heavily on accruals, which may not fully reflect cash flow realities.
- The company faces challenges in maintaining margins due to inflation and rising costs of materials.
- CLI's expansion into Luzon is still in the due diligence phase, indicating potential delays in project launches.
(audio in progress)
And of course, I'm here with our CFO, Grant Cheng, the hardest worker here aside from me. So we're very pleased to be reporting strong results to you, our shareholders and to our analysts viewing. We are reporting double-digit growth in earnings to parent.
Parent NIAT surged 24%, soaring to PHP1.7 billion from the adjusted PHP1.37 billion in the first half of 2023, reflecting alignment with the updated IFRS. Secondly, robust topline growth across all segments -- consolidated revenue surged PHP11.31 billion from PHP9.15 billion in the first half of 2023, marking a 24% growth. Thirdly, strong sales take-up backed by sustained solid housing demand in VisMin, sustainable housing demand in VisMin indicated by 94% sell-out status across different stages of development and 10% increase in reservation sales for the period. When we say 94% sold, this 94% sold of newly launched under construction and completed projects. So a very, very strong indicator and I would believe, industry
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