Cemex Holdings Philippines Inc. (CHP) reported a its net income fell 83 percent to P135 million for the first six months of 2020 from the P802 million earned in the same period last year.
In a disclosure to the Philippine Stock Exchange, CHP said “Operating earnings were adversely affected by lower activity due to COVID-19 quarantine measures.”
“The second quarter was very challenging for our company, with our volumes adversely impacted by quarantine measures nationwide,” said CHP President and CEO Ignacio Mijares.
He added though that, “we have seen construction activity gradually return with the easing of restrictions, starting the second half of May.”
CHP said its consolidated net sales decreased by 22 percent to P9.6 billion during the first six months of 2020, versus the comparable period in 2019. Sales decreased by 35 percent year-over-year to about P4 billion in the second quarter.
Domestic cement volumes decreased by 17 percent during the first half of 2020 versus the same period in 2019. For the second quarter, domestic cement volumes declined by 31 percent year-over-year.
CHP’s domestic cement prices during the second quarter and first half of the 2020 were 6 percent lower year-over-year, reflecting declines during the second half of 2019.
Operating EBITDA during the first six months of 2020 was at P1.8 billion, a decrease of 22 percent versus the same period in 2019.
Operating EBITDA margin was flat year-over-year at 19 percent for the first half of 2020, impacted by lower volumes and prices, which were partially offset by cost reduction initiatives and lower absolute distribution expenses. “We remain committed to supplying the Philippines with high quality cement to build the country for many years to come. By acting safely always, working together as one team, and focusing on the tasks at hand, I am encouraged that we will be able to surmount the challenges that lie ahead,” said Mijares.