Holcim net income jumps 41% to ₱3.59 B on improved prices

Published February 27, 2020, 12:00 AM

by manilabulletin_admin


Holcim Philippines, Inc. reported a 41 percent jump in net income to ₱3.59 billion last year from ₱2.55 billion in 2018 despite lower sales due to slow construction activity in the first half.

In a disclosure to the Philippine Stock Exchange, Holcim said net sales dipped 6 percent to 33.49 billion in 2019 from ₱35.62 billion in 2018.

Operating EBITDA grew year-on-year by 36.7 percent to ₱6.7 billion from ₱4.9 billion in 2018 as the company benefitted from initiatives to raise efficiencies and improve costs across all areas of the business.

A more favorable product mix and the steady contribution of its aggregates unit also helped business performance.

In the fourth quarter, revenues rose by 17.4 percent to ₱9.8 billion from ₱8.4 billion in the same period of 2018. The company’s Operating EBITDA surged by 66.9 percent to ₱2.5 billion, while net profits more than doubled to ₱1.7 billion from ₱804 million.

“We made significant progress in improving our company’s ability to deliver strong profitable returns to our shareholders last year,” said Holcim Philippines President and CEO John Stull.

He noted that, “Our sustained focus on operational efficiency and cost discipline for the past years lifted our bottom line.”

“With the completion of our capacity expansion projects, commercial innovations and stronger cost and efficiency mindset, Holcim Philippines is well positioned to deliver sustainable and healthy growth to shareholders and continue our support to this country’s development,” he added.

Last year, Holcim Philippines completed upgrades to its plants in La Union, Bulacan and Davao, which raised annual cement production capacity to 10 million metric tons.

Holcim Philippines also completed enhancements to its digital ordering platform “Easybuild” to further ease customer transactions and expand its reach.