Cemex Holdings Philippines Inc. reported a drop in net income to P758.1 million for the first nine months of 2020 from P874.7 million in the same period last year, due to the negative impact of the COVID-19 pandemic on operating earnings.
In a disclosure to the Philippine Stock Exchange, the firm said its consolidated net sales decreased by 17 percent to P15.1 billion during the first nine months of 2020, versus the comparable period in 2019.
Sales decreased by 6 percent year-over-year in the third quarter, reaching about P5.5 billion.
CHP’s domestic cement volumes decreased by 12 percent during the first nine months of 2020 versus the same period in 2019. For the third quarter, its domestic cement volumes declined by 3 percent year-over-year.
The firm said domestic cement prices during the first nine months of the 2020 were 5 percent lower year-over-year, reflecting declines which began in the second half of 2019.
Lower volumes and prices were partially offset by lower costs and cost containment measures, including maintenance cost deferrals.
“As the country takes steps towards reopening the economy, the impact of the pandemic remains a concern. We must continue to adapt to the challenges and limitations brought about by COVID-19,” said CHP President Ignacio Mijares.
He added that, “Full execution of the government’s infrastructure plan can help accelerate economic recovery. Nevertheless, we continue to be optimistic on the long-term growth prospects of the Philippines.”
As of September 30, 2020, CHP’s total debt was at P13.51 billion, a decrease of around P6.6 billion from December 31, 2019.
The lower debt level is a result of the repayment of respective debts owed by Solid Cement Corporation and APO Cement Corporation to CEMEX ASIA, B.V. using a portion of the proceeds raised from CHP’s Stock Rights Offering during the first quarter of 2020.