Holcim Philippines Inc. grew its profit in the first nine months of the year by 8 percent to P1.9 billion compared with last year’s P1.75 billion.
It reported sales of P23.7 billion, down 13.18 percent from P27.3 billion a year ago.
The company said operating earnings before interest, taxes, depreciation and amortization (EBITDA) rose 23.4 percent to P4.2 billion, helped by the strong performance of aggregates, “which grew by 38 percent on better prices despite lower volumes caused by the public construction slowdown.”
“Our earnings improvement continues in the third quarter resulting in strong growth in the first nine months of the year despite lower sales revenues. Our intensified focus on cost and operational efficiency across all our operations has allowed us to sustain high performance levels amidst a still muted market environment,” said John Stull, Holcim president.
“We have seen better pricing and a favourable product mix. With our new and improved cement production and dispatch facilities commissioned this year, we are ready to capture opportunities as the market grows and deliver innovative products and solutions to our customers,” Stull added.
Holcim said cement demand has started to pick up in the third quarter as government resumed its infrastructure spending.
However, it said sales volumes were still lower than the third quarter of 2018 despite improved pricing, resulting in lower sales of P8.3 billion for the quarter, compared to P8.5 billion last year.
“Still, the company’s operating EBITDA almost doubled year-on-year to P1.2 billion on cost improvements across all our operations coupled with better prices of cement and aggregates. Net income for the third quarter surged to P457.2 million from P176.9 million the previous year,” the company said.
Stull said Holcim opened new dispatch and loading facilities in its Bulacan plant in August improving its ability to serve customers in Central and South Luzon and the National Capital Region.
“These along with new production assets in La Union and Davao opened ahead of schedule earlier this year further strengthens Holcim Philippines’ ability to supply customers,” he said.
Sales of Solido, Holcim Philippines’ latest blended cement product launched in March, have steadily increased following positive reception from customers.