Holcim delivers resilient 2022 results
- Second half rebound in revenues with 9% year-on-year growth on retail network expansion and price increase to mitigate extraordinary costs
- Resilient results, despite 60% surge in fuel and energy
- Focus on sustainability, efficiency and cost discipline
- Company confident on delivering sustainable growth
Horia Adrian, President and CEO of Holcim Philippines, Inc. said: “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.”
“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.”
“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.”
FINANCIAL PERFORMANCE
Despite softer demand, the Company booked Php 26.6 billion in revenues in 2022 as it generated a premium from its differentiated offerings and strengthened its network of retail partners. The Company also gained momentum in the second half with revenues increasing 16% from the first half and 9% year-on-year to Php14.4 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%, but these were not enough to offset the extraordinary surge in fuel and energy costs, which ballooned by 60% from the previous year and accounts for 64% of production expenses. Still, Holcim delivered Php 2.3 billion in Operating EBIT LfL as its focus on sustainability, efficiency, and cost discipline softened inflationary pressures.
Net Profit LfL for 2022 would have reached Php 1.6 billion excluding a non-recurring expense reported in the third quarter.
For the fourth quarter, Net Sales reached Php 7.5 billion while Operating EBIT and Net Profit stood at Php 479 million and Php 455 million, respectively.
KEY DEVELOPMENTS
The Company delivered a number of sustainability achievements that improved business performance and increased positive environmental and social impact in 2022.
Among its remarkable sustainability highlights was the reduction of carbon emissions per ton of cement by 7% from 2021 in line with its decarbonization drive which also delivered savings of around Php 1.4 billion in production costs. The achievement was driven by efficiency initiatives using digital technologies and increased production of blended cement.
Another driver of decarbonization was the Company’s use of alternative fuels and raw materials which increased by 20% from 2021. Holcim Philippines converted around a million tons of qualified wastes into alternative fuels and raw materials for cement production from industrial partners and 35 local governments nationwide. This also helped the Company soften the impact of the surge in fuel and energy costs.
Furthermore, Holcim Philippines reduced freshwater withdrawals by 50% in 2022 through improvements to its water recycling facilities to cool equipment, installation of rainwater harvesting structures, and digitalization of monitoring and control tools for greater efficiency. Aside from lowering the Company’s freshwater withdrawals, these initiatives generated savings in 2022.
Finally, the Company’ social initiatives focused on housing and infrastructure, education and skills, health, environment and cultural benefitted 315,000 people in 2022 from 196,000.
KEY FIGURES (IN THOUSANDS)
| Full Year | Fourth Quarter | |||
| January to December 2022 | January to December 2021 | October to December 2022 | October to December 2021 | |
| Net Sales | Php 26,587,684 | Php 26,946,145 | Php 7,475,997 | Php 6,797,950 |
| Operating EBITDA (LfL**) | Php 4,068,250 | Php 5,412,362 | Php 995,635 | Php 955,922 |
| Operating EBIT (LfL**) | Php 2,256,144 | Php 3,547,224 | Php 479,248 | Php 454,299 |
| Net Profit (LfL***) | Php 1,643,174 | Php 2,565,163 | Php 455,177 | Php 264,767 |
*For more information on our financial performance this quarter, please refer to our page at the Philippines Stock Exchange website or the section on disclosures on our Company’s website.
**Operating EBITDA and Operating EBIT Like for Like figures include the rebate benefit from the group.
***Net profit Like for Like figures exclude the one-off cost stated above.
You may view our financial statements here.
