Cemex Holdings Philippines Inc. (CHP), one of the country’s top cement producers, reported an 18 percent growth in net income to P897 million for the first nine months of 2021 from the P758 million earned in the same period last year.

In a disclosure to the Philippine Stock Exchange, CHP said the higher profit is “mainly due to higher operating earnings and lower financial expenses.”

Consolidated net sales increased by 8 percent to P16.3 billion during the first nine months of 2021 versus the comparable period in 2020, due to higher volumes.

Sales slightly decreased by 2 percent year-over-year in the third quarter, amounting to P5.4 billion, due to lower prices.

CHP’s domestic cement volumes increased by 11 percent during the first nine months of 2021 versus the same period of last year.

For the third quarter, domestic cement volumes increased by 1 percent year-over-year, as construction activity remained stable despite a return to stricter lockdown measures due to the spread of the COVID-19 Delta variant.

CHP’s domestic cement prices during the first nine months of 2021 were 4 percent lower year-over- year mainly driven by higher proportion of pick-up sales.

Net of freight charges, CHP’s domestic cement prices year-to-date decreased by 1 percent versus the comparable period in 2020 mainly due to competitive market dynamics and the impact of COVID-19 in business activity.

CHP’s operating EBITDA for the first nine months of 2021 was P3.3 billion, an increase of 2 percent versus the same period in 2020, supported by higher volume.

Operating EBITDA margin was 20 percent for the first nine months of 2021, compared with 22 percent in the same period of last year, mainly due to higher cost of sales.

For the rest of the year, CHP expects its performance to be affected by seasonality factors resulting from the La Niña phenomenon, inflationary pressures driven by global energy and supply chain dynamics, and intense competition, as the effects of the COVID-19 pandemic remain.

Execution of public infrastructure projects should remain an important driver of economic recovery in the fourth quarter of 2021.

During the third quarter, CHP launched its “Vertua” and “Type 1P High Strength” cement products which offer reductions in CO2 emissions, providing customers with eco-friendly alternatives.

“Despite the challenges, we will look to create opportunities and work within the variables we can control, such as reducing expenses, enhancing customer experience, and making progress with our sustainability targets,” said CHP President and CEO Ignacio Mijares.