Holcim Philippines delivers excellent performance in Q2 2021

30 July 2021
 
  • Holcim Philippines delivers outstanding results in Q2 2021 reversing its loss from same period in 2020. Operating EBIT surged more than sixteen times
  • Improved market conditions along with consistent cost discipline and operational excellence powered the excellent performance
  • The company stepped up initiatives for sustainability and innovation in line with the Holcim Group’s ambition
  • COVID-19 vaccination program is ongoing to continuously support Health and Safety of our people and business

 

Horia Adrian, President and CEO of Holcim Philippines, Inc.: “Winning with purpose and helping build progress in the Philippines perfectly capture our performance in the second quarter. Aside from delivering outstanding results, we also helped our partners build greener, smarter, and for all. We continue our efforts to use recycled materials in our plants, having consumed more than 208,000 tons of wastes as alternative fuels and raw materials. Our Holcim HELPS initiatives on affordable housing, health and sanitation benefitted more than 27,000 people. We are also making huge strides in innovation and digitalization with our Easybuild digital platform now used by 99% of our customers for a better experience in transacting with us particularly in placing orders and monitoring deliveries. Finally, we advanced in our Plants of Tomorrow journey with a number of digitalization projects to raise efficiency and safety of operations. All these make us confident in having a more positive impact on the country as we deliver profitable growth to our shareholders.”


FINANCIAL PERFORMANCE

The Company’s Earnings before Interest and Taxes (Operating EBIT) for the second quarter of 2021 rose more than sixteen times year-on-year to Php953.6 million. This was due to the company’s rigorous cost discipline, sustained operational excellence and improved volumes. The net sales surged by 65% to Php 6.9 billion as demand and prices recovered with the rebound in construction activity. With these, the company recorded Php 721.4 million in net income for the second quarter to reverse its loss in the same period last year.

For the first half of 2021, Operating EBIT jumped 174% to Php 2.2 billion while net income climbed 294% to Php 1.6 billion. Net sales increased by 20% to Php 13.7 billion.

 

KEY DEVELOPMENTS

Holcim Philippines stepped up initiatives to strengthen innovation and sustainability to drive business performance and contribute to building progress in the Philippines.

During its 2021 Stockholders Meeting on 21 May 2021, the company's leaders highlighted programs to deliver innovative and sustainable products, more efficient operations, and stronger customer focus to raise business results and positive social and environmental impact. This was followed by the release of its first Integrated Annual Report aligned with the sustainability disclosure standards of the Global Reporting Initiative.

The company reiterated these messages during its 15 June 2021 virtual conference with 500 customers nationwide. The CEO also called for business partners’ support to help achieve the company’s sustainability goals by promoting and using Holcim green building products and solutions.

Furthermore, the CEO shared Holcim Philippines’ readiness to provide innovative and affordable building solutions to help local stakeholders address the housing backlog during a virtual forum organized by leading shelter organization Habitat for Humanity Philippines on 16 June 2021.

Holcim Philippines also signed an agreement on 7 July 2021 with Sinoma CBMIPH Construction Corp. to install drying facilities at cement plants in Bacnotan, La Union and Lugait, Misamis Oriental. The projects will reduce the plants’ fuel consumption and increase blended cement production. These will improve the company’s environmental footprint and service to customers.

The company started its COVID-19 vaccination program in July 2021 with a number of employees receiving their first dose from the shipment brought in by private sector partners. While it has ordered enough doses to cover majority of employees, the company is encouraging its people to secure vaccines offered by local governments.

 

KEY FIGURES (IN THOUSANDS)

 

Second Quarter

First Half

 

Apr.-June 2021

Apr.-June 2020

Jan.-June. 2021

Apr.-June 2020

Net Sales

Php 6,855,623

Php 4,148,083

Php 13,661,417

Php 11,418,564

Operating EBITDA

Php 1,434,423

Php 509,878

Php 3,150,925

Php 1,705,462

Operating EBIT

Php 953,564

Php 58,057

Php 2,227,697

Php 814,033

Net Profit (Loss)

Php 721,389

Php (87,710)

Php 1,630,736

Php 413,834

*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.