DMCI Homes 2024 net income dragged by weak sales

DMCI PROJECT Developers, Inc.’s (DMCI Homes) net income fell 31% to P2.8 billion in 2024 from a year earlier due to weak sales and fewer project launches.

Excluding one-time gains from land sales, the company posted a 35% decline in core net income to P2.5 billion, DMCI Homes said in a statement on Monday.

“The company recognizes revenue based on construction progress and buyer payments,” it said. “Since it typically takes four to five years before a sale is recorded as revenue, the slowdown in project launches during the pandemic continued to affect the company’s financial performance in 2024.”

DMCI Homes is the property arm of Consunji-led DMCI Holdings, Inc.

Last year was a challenging year for the real estate industry, “but it allowed us to sharpen our focus,” DMCI Homes President Alfredo R. Austria said in the statement.

Unit sales fell 22% due to soft residential demand.

The average selling price per unit rose 18%, while the price per square meter web up 8% on higher construction costs, the shift toward more premium and centrally located developments and the sale of larger units, it said.

DMCI Homes completed 11 buildings last year, from seven buildings in 2023.

“While our selling prices rose year on year due to rising construction costs and a shift toward more premium developments, they remain highly competitive given the quality and value we deliver,” Mr. Austria said.

DMCI Homes said it has seven projects in the pipeline with an estimated sales value of P35 billion. The launch schedule will depend on market demand and conditions.

“We focused our efforts on strengthening our financial position, preparing for future launches and developing new products for underserved markets,” Mr. Austria said. “As the market recovers, we are ready to roll out projects that offer strong value and quality.”

DMCI Holdings stocks gained 0.7% or eight centavos to P11.48 each at the close of trading. — Revin Mikhael D. Ochave