8990 HOLDINGS, Inc. President and Chief Executive Officer Januario Jesus Gregorio B. Atencio III announced on Monday his plan to step down from his post by December.
Mr. Atencio, who has held the positions since he founded the company along with partners 13 years ago, will retire in time for his 56th birthday in January, citing a personal promise to retire at the age of 55.
“Next year, I would be celebrating 25 years in the housing industry as I turn 56 in January. Realizing that I am at the homestretch of life and wanting to do something else, my partners and the Board have agreed with my wish to retire on Dec. 31,” Mr. Atencio said in his speech during the company’s annual shareholders meeting in Makati City.
With his retirement, 8990 Holdings Chief Operating Officer Willibaldo J. Uy will be given a more active role in operations in his current capacity.
“Willy as COO will now take charge of the day-to-day operations of our projects... He’s been in our company for two years already. If you’re talking about experience in the industry, Willy has it as well,” Mr. Atencio said.
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He said it is still premature to discuss his replacement as he still has five months left to lead the company.
After his retirement, Mr. Atencio will still remain on the company’s board of directors.
Asked what he considers to be his legacy during his tenure, Mr. Atencio talked about the growth story of 8990 Holdings.
“That a small company like 8990 who 13 years ago had only one project, 12 staff, doing P189 million in selling, but has a passion, has a commitment, and the desire to do good and hard work, no silver platter, no family trust fund, can now work its way up to be one of the major players in the industry, and a publicly listed company,” he said.
Since then, the company has built a total of 50,370 housing units spread out across 50 projects. Now, its landbank stands at 655.55 hectares, including 191 hectares valued at P5 billion purchased in 2016.
This year, 8990 Holdings is targeting to hit P10 billion in revenues which in turn will generate a net income of P4 billion to P5.4 billion.
The company’s earnings were flat in 2016, falling 3% year on year to P3.6 billion due to problems in the processing of permits which led to the delay of eight project launches, totaling 2706 units with a gross value of P2.4 billion. So far this year, 8990 Holdings has continued to encounter delays in following the timetable for projects. This affected the company’s bottom line in the first quarter of the year, which dropped by 29% to P736 million.
“We were hit twice -- number one the change in government and the other is a lot of the major projects were ending. That’s why in 2016 I had to launch 14. And then only six were (launched.) And now we’re launching 11, kasama na yung mga hindi natuloy,” Mr. Atencio said, citing the changes in housing policies when the Duterte administration took over.
“8990 always bounces back after a situation like this,” he added.
In a disclosure to the stock exchange issued Monday, the company announced that it has filed to list 100 million preferred shares at the Philippine Stock Exchange, with the initial tranche comprising 50 million preferred shares.
The firm also disclosed that it has filed a registration statement with the Securities and Exchange Commission to register 100 million preferred shares under the commission’s shelf registration program.
Shares in 8990 Holdings lost four centavos or 0.68% to close at P5.85 apiece on Monday. -- Arra B. Francia