Holcim Philippines continues strong performance in Q3

12 November 2021
 
  • Holcim Philippines delivers strong performance through continued operational and cost excellence
  • Drive to lead innovation continues with launch of new building solutions across the country
  • The Company is on track to achieve its sustainability commitments and ambitions

 

Horia Adrian, President and CEO of Holcim Philippines, Inc. “Our continuing focus on operational efficiencies and cost management enabled us to drive performance despite market demand and inflationary challenges. We take pride in leading industry innovations with our new building solutions that help partners build better. Finally, we made significant progress in strengthening sustainability of operations with organizational realignments and project milestones that further improve our environmental performance and social impact. These make us ready to support the continued progress of the country and grow our business as market conditions and building activities further improve.”


FINANCIAL PERFORMANCE

Holcim Philippines’ Earnings Before Interest and Taxes (Operating EBIT) from January to September 2021 grew 70% year-on-year to Php 3.1 billion. The improved performance was driven by the Company’s continued focus on operational efficiency and cost management across the business. Net Sales increased by 7% to Php 20.1 billion from the same period last year. This was due to the recovery of the market as seen in the improved demand for construction materials which positively impacted the Cement, Aggregates, and Dry Mix businesses. The Company’s Net Profit reached Php 2.3 billion, higher by 124% from last year.

In Q3 2021, the Company was confronted with significant cost increases of fuel and power. Market demand was also impacted by inclement weather and control measures against the resurgence of COVID-19. Holcim Philippines is sustaining its focus on operational excellence and cost discipline. During this period, the Company recorded Operating EBIT and Net Sales of Php 865.2 million and Php 6.5 billion, respectively.

 

KEY DEVELOPMENTS

Holcim Philippines continued to advance sustainability and innovation to drive performance.

The Company appointed Zoe Sibala, former Vice President of Strategy to Senior Vice President of Sustainability, and expanded the role of Richard Cruz, Vice President of Health, Safety, and Security, to include the Environment portfolio. The appointments took effect on August 15. Eliana Nieto, former Chief Financial Officer (CFO) of Holcim Ecuador, also joined Holcim Philippines as its new CFO on August 10.

On September 2, Holcim Philippines renewed its partnership with the University of the Philippines College of Engineering for an elective course that highlights the value of sustainability and inclusivity in building for development.

On September 30, the Company inaugurated new storage and processing facilities in the Bulacan Plant that further strengthens its position as the industry frontrunner in using alternative fuels and raw materials in cement production. These facilities raise the Company’s Geocycle unit’s capacity to store and shred materials such as qualified post-consumer and municipal solid wastes for conversion to alternative fuels through cement kiln co-processing.

Finally, the Company introduced in the third quarter the Holcim AAC Block Adhesive, for laying all types of AAC (autoclaved aerated concrete), bricks and various types of cement blocks. Holcim AAC Block Adhesive is the third new building solution that Holcim Philippines has launched in 2021 after multipurpose mortar Holcim Multifix and water-repellent cement Holcim Aqua-X earlier in this year.

 

KEY FIGURES (IN THOUSANDS)

 

Third Quarter

Nine Months

 

Jul.-Sept. 2021

Jul.-Sept. 2020

Jan.-Sept. 2021

Jan.-Sept. 2020

Net Sales

Php 6,486,778

Php 7,361,373

Php 20,148,195

Php 18,779,937

Operating EBITDA

Php 1,305,515

Php 1,495,685

Php 4,456,440

Php 3,201,147

Operating EBIT

Php 865,228

Php 1,006,133

Php 3,092,925

Php 1,820,167

Net Profit

Php 669,561

Php 613,697

Php 2,300,297

Php 1,027,531

 

*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.