Cemex Holdings Corporation Inc. (CHP) widened its net loss to P1.2 billion in the first nine months of 2023 from its previous loss of P819 million in the same period in 2022 due to lower operating earnings. 

In a disclosure to the Philippine Stock Exchange (PSE), CHP recorded a net loss of P583 million for the third quarter this year from P552 million in the third quarter for 2022. 

The cement producer's sales also decreased 15 percent to P13.5 billion in the nine-month period this year compared to P15.8 billion in the same period last year, attributed to lower volumes and declining prices. 

CHP noted that it recorded the highest quarterly volume of sales in the third quarter of 2023, but the increased volume was affected by "challenging external environment." 

Its operating earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first nine months this year was also 76 percent lower at P673 million, compared to the P1.4 billion gain in the same period last year. 

Operating EBITDA declined because of "higher cost of sales, led by higher energy costs, and lower sales, as industry demand continued to be soft," said the firm. 

Meanwhile, CHP's cost base saw a decline in cost of sales and distribution cost for three consecutive quarters, driven by reduced energy costs and enhanced operating efficiencies. 

CHP President and CEO Luis Franco commended the firm's initial progress in "implementing its EVOLVE efficiency program, and in optimizing its operations, streamlining processes, increasing supply chain efficiency, and improving our energy mix."

"Even so, much more work needs to be done, as we expect challenging market conditions and cost pressures to persist during the fourth quarter of 2023. In this year of transition for our company, we remain dedicated to finding opportunities to improve our overall efficiency and profitability by proactively managing the variables we can control," Franco added.