Vista Land sees 20-25% profit growth in 2008

ABS-CBN News

Posted at Jun 16 2008 05:09 PM | Updated as of Jun 17 2008 01:09 AM

By JUDITH BALEA
abs-cbnNEWS.com

 
Vista Land & Lifescapes Inc. of the Manual Villar group is confident its core net income for 2008 can exceed last year's figure by 20-25 percent despite high inflation, which can hold back consumer spending.

Vista Land, the country's fourth-largest homebuilder with a market capitalization of about P27 billion, expects a core net profit of up to P2.6 billion from P2.1 billion in 2007.

President and chief executive Benjamarie Serrano told reporters that the growth would be driven by strong sales of the company's middle-income and low-cost housing segments.

"There are a lot of challenges this year given high inflation and rising fuel prices but as far as our sales are concerned, we don't see any slowdown," she said.

"Our products cater to end-users. Regardless of the economic condition, if people want to buy houses, they will."

Serrano said Vista Land is banking on the overseas Filipino market, which accounts for over 50 percent of the company's sales. "Remittances remain strong. There has been a slowdown in sales in the US but this was offset by sales growth in other countries."

Vista Land targets to generate P10.6 billion in real estate revenue this year, up 29 percent from P8.2 billion last year. For the first five months, it said sales take-up already reached P7.5 billion.

The company has set a budget of P12.8 billion for this year, of which P5.4 billion would be spent for land acquisitions, P3.9 billion for land development and P3.5 billion for house construction. It will launch 43 new projects in 2008 estimated to cost a total of P53 billion.