Boutique property developer Italpinas Development Corp. (IDC) reported a 36.5 percent decline in earnings for the first half, primarily due to increased expenses related to its expansion efforts.
IDC’s net income for the period stood at P9.95 million, down from last year’s P15.68 million.
Despite the company’s implementation of cost-cutting measures, its general and administrative expenses went up by 3.2 percent.
This increase was largely attributed to the ongoing expansion of IDC’s operations.
The firm also recruited new staff members, and some existing employees received higher compensation as a recognition of their outstanding performance.
On the flip side, net sales saw a robust 71 percent surge to reach P201 million.
The robust sales performance was driven by heightened units sold, improved collections, and advancement in construction progress.
Throughout the first half, IDC managed to secure nearly P100 million through end-user bank financing, which bolstered its cash position.
The company also received funds from development loans, which were promptly utilized to accelerate ongoing projects such as Primavera City Phase 2 and Miramonti Green Residences Phase 1.
IDC aims to finalize the construction of these projects by the first quarter of 2024.