- Sustainability initiatives yielding business, environmental benefits
- Focus on cost discipline, operational efficiency continues amid cost spikes
Horia Adrian, President and CEO of Holcim Philippines, Inc. said: “We are determined to deliver value to all our stakeholders despite soft market and cost pressures. Our strategy to embed sustainability in our operations is enabling us to manage current challenges and deliver sustainable business performance. We are committed to pursue initiatives to broaden our range of innovative and eco-friendly building solutions, advance operational efficiency through digitalization, and strengthen customer engagement for better business results and more positive impact.”
Revenues for the first half reached Php 12.2 billion as the Company continued to grow and expand its range of building products and solutions supported by engagements with key industry stakeholders. These engagements are increasing awareness on the benefits of using more blended cements in various construction projects and the right product for the right application to increase efficiency, reduce waste, and lower the carbon footprint of the built environment.
The Company faced escalating costs driven by significant hikes in fuel and power prices, as well as slower demand particularly from the public sector as the new-construction ban took effect in relation to the national elections. To address these and improve business resilience, commercial programs that provide better value to customers and the Company were sustained.
The Company likewise continued to drive operational efficiencies to deliver performance amidst unprecedented increases in production and distribution costs caused by external developments. To help offset rising costs, Holcim Philippines accelerated its use of qualified wastes as alternative fuels, which now account for more than 20% of the Company’s combined thermal energy requirements.
For the first half, operating EBIT and net income reached Php1.2 billion and Php 661.4 million. For the second quarter, operating EBIT and net income were Php687.9 million and Php240.9 million, respectively.
The Company successfully launched last July 7 in Manila the Circular Explorer, a solar-powered catamaran developed by the Holcim Group and One Earth, One Ocean Foundation to help rehabilitate the Manila Bay. Over the next three years, Holcim Philippines will host the vessel which symbolizes the Group’s commitment to a circular economy. The Circular Explorer can recover up to four tons of plastic waste per day while also serving as a platform to engage students and communities on environmental conservation and a research vessel to study marine pollution.
Holcim Philippines also continued outreach initiatives to inform partners about its sustainability commitment and accomplishments. In June, the Company hosted officials from the Department of Environment and Natural Resources-Climate Change Service at its Bulacan plant for a briefing on its efforts to further reduce the carbon footprint of operations through efficiency initiatives, increased use of alternatives fuels and raw materials, and higher production of blended cement. Furthermore, the Company was a resource speaker in a webinar organized by the Philippine Constructors Association on decarbonizing the construction industry. Holcim Philippines shared its Net Zero roadmap and initiatives to provide greener alternatives to local builders.
Finally, Holcim Philippines launched on July 29 in Davao its low-carbon general purpose cement Holcim ECOPlanet to provide partners with a sustainable and high-performance building material as they continue advancing development in South Mindanao.
KEY FIGURES (IN THOUSANDS)
|| First Half
|| Second Quarter
||January to June 2022
||January to June 2021
||April to June 2022
||April to June 2021
||Php 2,084, 676
*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.