Eagle Cement Corporation saw its net income dipped three percent to P1.66 million during the first quarter of the year from P1.72 billion in the same period of 2021 as the increase in revenue was offset by the inflationary input cost pressures.
In a disclosure to the Philippine Stock Exchange, the firm said that, without the one-time adjustment in 2021 income tax, net income would have increased by 2 percent.
Eagle Cement said it generated net sales of P6.83 billion, a 30 percent growth from the P5.3 billion in the corresponding period last year.
This is due to historically high quarterly sales volume and higher average price of cement, with additional revenue contribution from its subsidiary Solid North Mineral Corporation.
Of the Company’s total cement sales, Type 1P or bagged cement still accounted for the lion’s share at 85 percent while the remaining 15 percent was derived from Type 1 or bulk cement, with domestic demand still largely coming from the private sector.
Cost of goods sold increased by 45 percent led higher by the increase in consumption of raw materials relative to the increase in sales volume, coupled with the rise in prices of coal, power and diesel.
Gross profit was at P2.59 billion, 11 percent higher from the P2.34 billion last year. Gross profit margin registered at 38 percent.
Operating expenses increased by 42 percent largely due to higher freight costs attributable to sales volume growth and spike in oil prices, increase in warehousing expenses and higher spending in advertising and promotions expenses.
Interest income declined by 26 percent to P50.9 million from P68.7 million, due to the lower interest rates in the first quarter of 2022 as compared to the first quarter of 2021.
Finance costs slipped by 18 percent to P78.5 million, as a result of the partial repayment of loan related to the Term Loan Facility and Security Agreement (TLFSA).
Provision for income tax jumped by 57 percent to P222.6 million from P141.5 million as prior year income tax expense was negated by the P86.0 million adjustment in relation to the effect of CREATE for the year 2020.