Cemex Holdings Philippines Inc. reported profits of P1.28 billion for 2019, a reversal from the P970.66-million loss posted the previous year.
Sales reached P23.6 billion last year, relatively flat compared with the prior year’s P3.42 billion.
“For the fourth quarter, net sales decreased by 3 percent year-over-year due to lower volumes, as adverse weather conditions in the month of December affected Luzon and Visayas,” the company said.
Cemex said domestic cement volume for the full year was also down 3 percent due to slowdown in construction activity, as a result of the delayed passing of the government’s budget and the mid-term elections.
Domestic cement prices posted a 4 percent price inflation last year.
Cemex said its direct cost as a percentage of sales decreased by 2 percentage points in 2019 to 59 percent from 61 percent in 2018.
“Operating expenses, as a percentage of sales, were lower by 2 percentage points year-over-year in 2019. The decrease was due to lower distribution expenses resulting from supply-chain-optimization initiatives,” it said.
Cemex recognized earnings before interest, tax, depreciation and amortization of P4.2 billion for the year.
“I am pleased with what we accomplished in 2019, as these were a result of our efforts to maintain efficiencies, optimize costs, and improve our customers’ experience,” said Ignacio Mijares, Cemex president.
Cemex recently completed its P12.77-billion stock rights offering, where shareholders were offered rights to acquire 8.29 billion more common shares at P1.54 per share. The company said it will use the proceeds to fund the expansion of its Solid Cement plant and pay debts of units Solid Cement Corp. and APO Cement Corp.
Cemex is an indirect subsidiary of CEMEX, S.A.B. de C.V., listed with the Mexican Stock Exchange and the New York Stock Exchange.
