By James A.Loyola
Local cement maker Eagle Cement Corporation (EAGLE) reported a 5 percent net profit growth to P2.3 billion for the first six months of 2018 from P2.2 billion in the same period last year.
In a statement, the firm said the higher earnings are a result of robust sales and efficient operations despite challenging market environment.
Eagle posted a 10 percent increase in net sales to P8.2 billion for the six months of the year from P7.5 billion in the comparable period.
Gross profit margin was maintained at a favorable level of 48 percent. Similarly, EBITDA rose by 5 percent during the period, translating into an EBITDA margin of 43 percent.
For the second quarter of 2018, Eagle generated net sales of P4.2 billion, 14 percent higher compared to the relative quarter last year. Net income went up by 6 percent to P1.3 billion compared to the same quarter in 2017.
“As we strengthen our brand and increase our sales capacity, we remain focused on achieving our cost synergy and productivity targets with the use of the most efficient and energy saving cement manufacturing technology,” said Eagle President and Chief Executive Officer Paul Ang.
He added that, “we remain confident that we will be able to sustain growth towards the end of the year, with the improving construction activity of the private sector and expected roll out of government infrastructure projects.”
As of end-June 2018, the Company’s balance sheet remains solid, with total assets registering at P43.0 billion.
Eagle remains compliant with its loan covenants, with debt to equity ending at 0.42x while financial debt to equity stood at 0.29x.