Diversified engineering conglomerate DMCI Holdings Inc. reported that it has been awarded four prestigious titles at the 14th Asian Excellence Awards for its outstanding leadership, financial performance and commitment to investor relations. 

In a disclosure to the Philippine Stock Exchange (PSE), the firm said that for the second straight year, DMCI Holdings Chairman and President Isidro A. Consunji was named Asia's Best CEO.

Meanwhile, Herbert M. Consunji was recognized as Asia's Best Chief Finance Officer as Cherubim O. Mojica received the award for Best Investor Relations Professional, and DMCI Holdings was honored as Best Investor Relations Company.

"We are very proud to receive these honors," said Isidro A. Consunji, adding that "these awards reflect the dedication and hard work of our entire team, who continually strive for excellence in all aspects of our business."

Established in 2011, the Asian Excellence Awards are renowned for celebrating achievements in various fields, including management, financial performance, corporate social responsibility, environmental practices and investor relations. 

DMCI recently acquired Cemex Holdings Philippines (CHP), its largest investment to date and its first acquisition in a decade, which it plans to return to profitability by next year through synergies within the group.

CHP, the Philippines' fourth-largest cement manufacturer, reported losses of P1 billion in 2022 and P2 billion in 2023, primarily attributed to escalating costs and reduced sales volumes.

“We recognize CHP's operational and financial issues, but we are positive that we can turn it around by 2025 because of its ongoing capacity expansion and the clear synergies it brings to our group,” said Consunji.

He noted that “while cement demand is currently soft, we expect it to rebound as our turnaround plan progresses, supported by the Build Better More program and the anticipated easing of interest rates next year.”

CHP is in the process of constructing a 1.5-million-ton integrated cement production line at its Solid Plant in Antipolo, Rizal. The new cement production line is scheduled to commence operations by September 2024.

This expansion will effectively double the company's cement production capacity in the Luzon region. It will also boost CHP's overall installed annual production capacity by 26 percent from 5.7 million tons to 7.2 million tons.

DMCI Holdings anticipates power, fuel and other production supplies costs, which represent 73 percent of CHP’s cost of sales in 2023, to decrease due to normalizing market prices and the transition to a more affordable energy supplier, Semirara Mining and Power Corporation (SMPC).

Additionally, administrative and selling expenses, which accounted for 52 percent of prior-year operating expenses, are expected to decline from talent and business process onshoring initiatives, following the exit of CEMEX.

Meanwhile SMPC expects a significant increase in its coal sales to CHP, estimating a 227 percent rise to 500,000 metric tons annually compared to 2024 levels. In addition to coal, the integrated energy company can also supply CHP with 50MW of electricity and fly ash.

On the other hand, based on historical consumption patterns, DMCI and DMCI Homes are estimated to source around 400,000 metric tons of cement from CHP.

This volume has the potential to expand further, subject to growth in DMCI's order book and a recovery in DMCI Homes' project launches.