Holcim Q1 profits fall on higher energy cost


Holcim Philippines, the country’s largest cement producer, reported a 54 percent fall in net income to P420 million in the first quarter of 2022 from the P909 million earned in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said revenues dipped slightly to P6.74 billion in the first three months this year from P6.81 billion in the same period of 2021.

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Elevated cost of production and distribution caused by soaring energy prices was partially mitigated by higher prices and efficiencies leading to an Operating EBIT of P519.8 million in the first quarter of 2022 from P1.27 billion in the same period last year.

To manage the adverse impacts of energy inflation, Holcim Philippines is focused on operational efficiency across all aspects of the business.

The deployment of digital tools in the production process, optimization of raw materials and increasing use of alternative fuels and raw materials is helping cushion the cost inflation impact.

“Our long-standing focus on cost and operational excellence provided us a solid foundation to weather the impact of unprecedented spikes in energy prices,” said Holcim Philippines President and CEO Horia Adrian.

He added that, “our thrust to deliver more innovative and differentiated building solutions allowed us to deliver better value to our customers. We are also committed to integrating sustainability in our business for a positive environmental and social impact.”

The company is also ramping up customer engagements, product innovations, and service improvements to better capture business opportunities.