Vista Land & Lifescapes (VLL) Q4 2024 earnings summary

Executive summary

• Total revenues for 2024 reached PHP 37 billion, up 5% year-over-year, driven by higher real estate and rental income.

• Gross profit rose 30% to PHP 11.8 billion, with gross margin improving to 71% due to cost-saving initiatives and lower cost of sales.

• Core net income increased 10.9% to PHP 9.37 billion, supported by higher sales and improved margins, though reported net income was down 9% due to absence of prior year insurance gains.

• Reservation sales hit PHP 79.1 billion, up 10% from the previous year.

Financial highlights

• EBITDA grew 11% to PHP 22.8 billion, with an EBITDA margin of 62%.

• Operating expenses decreased by up to 10% to PHP 10.4 billion, mainly from lower impairment losses and maintenance costs.

• Interest and financing charges surged 73% to PHP 9.8 billion due to lower capitalization under PAS 23.

• Cash and investments declined 9% to PHP 45 billion, reflecting debt servicing and investments.

• Total assets rose 11% to PHP 380.5 billion; equity increased 3% to PHP 137.3 billion.

Outlook and guidance

• Gross margin is expected to normalize at 65-66% moving forward, reflecting sustainable cost initiatives.

• Most new launches will focus on horizontal and provincial projects due to oversupply in Metro Manila condos.

• Pre-sales targets for 2025 are expected to be at least at 2024 levels.

• CapEx plans for the next years will be disclosed in the upcoming first quarter briefing.

• No significant seasonal or extraordinary factors anticipated to impact 2025 performance.