Eagle Cement profits hit record at P3.7 B

Published August 15, 2021, 3:40 PM

by James A. Loyola

Eagle Cement profits hit record at

P3.7 B

Eagle Cement Corporation posted a 181 percent jump in net income to a record P3.7 billion in the first half of 2021 from P1.32 billion in the same period last year as the government allowed the resumption of construction activities.

In a disclosure to the Philippine Stock Exchange, EAGLE reported an 87 percent growth in net sales to P11.06 billion the P5.91 billion generated in the first semester of 2020.

The firm said this is due to higher sales volume notwithstanding the decrease in average selling price of cement per bag due to tight competition.

Of the Company’s total sales, Type 1P or bagged cement still accounted for the largest proportion at 83 percnet while the remaining 17 percent was derived from Type 1 or bulk cement, with domestic demand still largely coming from the private sector.

Consequently, cost of goods sold increased by 67 percent, reflecting the growth in sales volume.

Gross profit was at P5.12 billion, 117 percent higher from the P2.36 billion last year. Gross profit margin improved to 46 percent.

Operating expenses rose 48 percent largely due to the freight expenses driven by the increase in sales volume.

Interest income decreased by 53 percent to P119.6 million from P255.1 million weighed down by the lower fund invested for money market placements coupled with lower interest rates.

Other income for the period jumped by 438 percent to P104.7 million derived from the dividend income from investment in unquoted equity security.

Finance costs slipped by 16 percent to P186.8 million, as a result of the partial repayment of loan related to the Term Loan Facility and Security Agreement (TLFSA).

Income tax expense increased by 6 percent to P391.7 million primarily due to the significant growth in sales volume cushioned by the resumption of application of income tax holiday on Board of Investments-registered activity and lower taxes of the CREATE law.

These movements resulted in earnings before interest, tax, depreciation and amortization (EBITDA) of P4.74 billion, a 118 percent upsurge versus last year, with margin expanding to 43 percent.

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Eagle Cement Corporation, the cement manufacturer controlled by the family of tycoon Ramon S. Ang, posted a 181 percent jump in net income to a record P3.7 billion in the first half of 2021 from P1.32 billion in the same period last year as the government allowed the resumption of construction activities.

In a disclosure to the Philippine Stock Exchange, EAGLE reported an 87 percent growth in net sales to P11.06 billion the P5.91 billion generated in the first semester of 2020.

26108

The firm said this is due to higher sales volume notwithstanding the decrease in average selling price of cement per bag due to tight competition.

Of the Company’s total sales, Type 1P or bagged cement still accounted for the largest proportion at 83 percnet while the remaining 17 percent was derived from Type 1 or bulk cement, with domestic demand still largely coming from the private sector.

Consequently, cost of goods sold increased by 67 percent, reflecting the growth in sales volume.

Gross profit was at P5.12 billion, 117 percent higher from the P2.36 billion last year. Gross profit margin improved to 46 percent.

Operating expenses rose 48 percent largely due to the freight expenses driven by the increase in sales volume.

Interest income decreased by 53 percent to P119.6 million from P255.1 million weighed down by the lower fund invested for money market placements coupled with lower interest rates.

Other income for the period jumped by 438 percent to P104.7 million derived from the dividend income from investment in unquoted equity security.

Finance costs slipped by 16 percent to P186.8 million, as a result of the partial repayment of loan related to the Term Loan Facility and Security Agreement (TLFSA).

Income tax expense increased by 6 percent to P391.7 million primarily due to the significant growth in sales volume cushioned by the resumption of application of income tax holiday on Board of Investments-registered activity and lower taxes of the CREATE law.

These movements resulted in earnings before interest, tax, depreciation and amortization (EBITDA) of P4.74 billion, a 118 percent upsurge versus last year, with margin expanding to 43 percent.

 
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