Holcim Philippines Inc. reported a 71 percent fall in net income to P413.83 million in the first half of 2020 from the P1.42 billion earned in the same period last year as sales dropped due to the lockdown implemented by the government amid the pandemic.
In a disclosure to the Philippine Stock Exchange, Holcim said that, “While there was a recovery in June, revenues for first half of 2020 declined by 25.8 percent to P11.4 billion from P15.4 billion in the same period last year as volumes and prices fell after construction activity slowed due to measures to control the COVID-19 pandemic.”
With the lower revenues, earnings before interest, taxes, depreciation and amortization (EBITDA) slid by 43.7 percent year-on-year to P1.7 billion from P3.0 billion despite the company’s stern measures to manage all costs.
“The ongoing pandemic has caused challenges to the country. At Holcim Philippines, we took quick and decisive actions focused on safeguarding the health of our people, controlling costs, and preserving cash. This has helped us to mitigate the COVID-19 impact on our company,” said Holcim Philippines President and CEO John Stull.
He noted that, “We remain optimistic about the future and our ability to deliver great value to our shareholders, customers, and communities while maintaining a healthy and safe workplace.”
The Department of Public Works and Highways said in July that major infrastructure projects are on track and the government’s “Build, Build, Build” program will play a key role in growing the economy amid the pandemic.
Holcim Philippines said it is ready to support partners in this effort. Quick actions to keep people safe against COVID-19 in its operations enabled the company to quickly reopen all its manufacturing facilities and ramp up operations in Luzon and Davao after the local and national governments eased quarantines in May.
Cost and efficiency initiatives across the business are also continuing highlighted by the recent completion of maintenance activities in a number of its facilities with minimal support from third-party contractors. The company is also ready with commercial innovations to better support and serve partners. Digital platforms have enabled Holcim Philippines to continue providing seamless service to customers amid the pandemic.