Cemex Holdings Philippines Inc. (CHP) reported a decline in consolidated net income to P985 million last year from P1.3 billion in 2019 due to the negative impact of the COVID-19 pandemic on cement prices and volumes.

In a disclosure to the Philippine Stock Exchange, the firm said its consolidated net sales decreased by 16 percent in 2020, reaching around P19.7 billion, versus the comparable period in 2019. 

CHP said its domestic cement volumes decreased by 11 percent in 2020 due to the COVID-19 pandemic.

For the fourth quarter, its domestic cement volumes declined by 9 percent year-over-year due to adverse weather conditions, amidst the ongoing pandemic. 

CHP’s domestic cement prices in 2020 were 6 percent lower year-over-year. The movement in CHP’s composite price was driven by a higher proportion of pick-up sales, lower demand, and competitive market dynamics. 

Operating earnings before interest, taxes, depreciation and amortization (EBITDA) for 2020 reached P4.2 billion, a decrease of 1 percent versus 2019, and its Operating EBITDA margin was at 21percent for 2020.

Lower volumes and prices were partially offset by lower costs and efforts to contain expenses. 

“Our results in 2020 were made possible by the effort and dedication of our employees, despite the unexpectedly challenging and extraordinary year,” CHP President and CEO Ignacio Mijares said.

He added that, “We remain cautious on the road ahead as headwinds and uncertainty remain. Nevertheless, we will continue to build on our learnings from 2020 to capture the opportunities around us.” 

The company’s Solid Cement plant expansion project reached a milestone in January 2021 with the lifting of the new kiln into position.

This rotary kiln is part of Solid Cement’s new cement line, which, upon completion, will add 1.5 million tons of annual cement capacity. CHP expects the construction of the new line to be completed in December 2021.(James A. Loyola)