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Holcim profit drops on higher costs

Published Mar 29, 2023 01:52 pm



Holcim Philippines reported a 172 percent fall in net income to P941.78 million last year from P2.56 billion in 2021 due to higher costs and a one time expense. In a disclosure to the Philippine Stock Exchange, the frim said net profit “like for like” figures for 2022 would have reached P1.6 billion excluding a non-recurring expense reported in the third quarter. Despite softer demand, Holcim revenues only dipped slightly to P26.59 billion in 2022 from P29.95 billion in 2021 as it generated a premium from its differentiated offerings and strengthened its network of retail partners. It also gained momentum in the second half with revenues increasing 16 percent from the first half and 9 percent year-on-year to P14.4 billion as sales steadily grew in the third and fourth quarters. The Company was able to increase prices due to its commercial excellence initiatives and reduce fixed costs by 11 percent, but these were not enough to offset the extraordinary surge in fuel and energy costs, which ballooned by 60 percent from the previous year and accounts for 64 percent of production expenses. “In the face of extraordinary challenges, our Company and people displayed tremendous resilience that enabled us to deliver positive financial performance and contribute to building progress in the country,” said Holcim Philippines President and CEO Horia Adrian. He added that, “Alongside a strong sales rebound in the second half and expansion of our customer base, we accelerated decarbonization of operations driven by higher usage of alternative fuels and raw materials and production of blended cements.” “These achievements were key to our resilient results and long-term success anchored on our transformation into the leader in innovative and sustainable building solutions in the Philippines,” Adrian noted. “With our growing portfolio of high-performance building solutions and retail partners and strong sustainability mindset, we are well positioned for the future. We are excited to continue growing the Company to deliver value to our shareholders and support the country’s development,” he said.
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