Cemex Holdings Philippines Inc. (CHP), one of the country’s largest cement makers, reported a 27 percent growth in net income to P261 million in the first quarter of 2022 from the P205 million posted in the same period last year.

“We continue to adjust and adapt our operation to the challenging market situation. We will continue to contribute to economic recovery and take climate action to build a better and more sustainable future,” said CHP President and CEO Ignacio Mijares.

For this year, CHP expects its cement volume to grow by mid single-digit percentage, with construction activity picking up towards the second half of the year.

Inflationary pressures are expected to continue amidst uncertainty over external factors, such as the Russia invasion of Ukraine.

In a disclosure to the Philippine Stock Exchange, the firm said net sales increased by 1 percent year-over-year during the first quarter of 2022 due mainly to price updates.

CHP said volume declined 6 percent but “improved during the quarter, after a slow start affected by the recovery from Typhoon Odette and a surge in Omicron-led Covid-19 cases.”

It added that, “Our domestic cement prices were up by 3 percent sequentially (7 percent year-on-year) due to price updates in the first quarter of 2022, mainly to reflect input cost inflation in fuel and transport.”

Cost of sales was 62 percent of sales for the first quarter of 2022, compared with 61 percent in the same period of 2021, mainly due to higher fuel cost.

Total fuel cost was up by 50 percent year-over-year driven by elevated global energy prices. Total power cost was 8 percent lower year-over-year mainly due to lower volume sold.

Operating expenses were 27 percent of sales for the first three months of 2022, compared with 30 percent in the same period of 2021.

Distribution expenses were 13 percent of sales during the first quarter, a decrease of 3 percentage points year-over-year, supported by supply chain efficiencies.

Selling and administrative expenses, as a percentage of sales, were flat at 14 percent during the first quarter.

Operating EBITDA for the first quarter of 2022 increased by 2 percent year- over-year, mainly due to price updates and lower distribution expenses.

Operating EBITDA margin was flat at 20 percent for the first quarter of 2022, with price updates and efficiency initiatives.

Financial expenses increased by 67 percent year-over-year due to a temporary pause in interest capitalization for CHP’s Solid Plant New Line, prior to resumption of the project.