Cemex Holdings Philippines Inc. (CHP) reported a 495 percent jump in net income to P804 million in the first half of 2021 from the P135 million earned in the same period last year, mainly due to higher operating earnings.
In a disclosure to the Philippine Stock Exchange, the firm said its consolidated net sales increased by 13 percent to P10.9 billion during the first six months of 2021, versus the comparable period in 2020.
Sales increased by 43 percent to P5.7 billion year-over-year in the second quarter, reflecting a low comparable base resulting from strict government lockdown last year.
CHP’s domestic cement volumes increased by 16 percent during the first six months of 2021 versus the same period of last year. For the second quarter, domestic cement volumes increased by 45 percent year-over-year, supported by a low base effect.
The firm’s domestic cement prices during the first six months of 2021 were 4 percent lower year-over- year. Net of freight charges, CHP’s domestic cement prices during the first half of the year decreased by 1 percent year-over-year mainly due to competitive market dynamics and the impact of COVID-19 on business activity.
“Despite the positive developments we have seen during the first six months, we recognize that there will be headwinds during the second half of the year,” said CHP President and CEO Ignacio Mijares.
He added though that, “I am confident in our ability to face these challenges through the commitment, teamwork, and proven resilience of our employees.”
For the second half of 2021, CHP expects its performance to be affected by seasonality factors resulting from the rainy season, competitive market dynamics, and inflationary cost pressures, while the threat of COVID-19 remains.
The government’s public infrastructure spending program should be a key driver of economic activity for the rest of the year.
Regarding CHP’s Solid Cement New Line, the works on the different superstructures of the new line and installation of various equipment remained ongoing throughout the second quarter, following strict health and safety protocols during the current COVID-19 pandemic.
CHP now expects the construction of the Solid Cement New Line to be completed in June 2022.