Holcim Philippines delivers excellent results in Q1 2021

23 April 2021
 
  • Commercial excellence, strong cost and operational discipline led to excellent EBIT and net income growth in Q1
  • The Company is set to implement a COVID-19 vaccination program for its people

Horia Adrian, President and CEO of Holcim Philippines, Inc. said: “We delivered an excellent performance in the first quarter due to our sustained focus on Health, Cost, and Cash.  Commercial excellence, operational efficiency and cost discipline were key drivers to our stronger profitability. Our Company is committed to contributing to a healthy and sustainable growth of the construction industry in the Philippines. We continue to stay focused on our cost, operational discipline and providing customers with innovative products and solutions. To further protect our people and business we are implementing a voluntary COVID-19 vaccination program by the third quarter. This will further bolster our resilience and help us sustain robust performance.”

FINANCIAL PERFORMANCE

Compared with 2020, the Company’s Earnings before Interest and Taxes (EBIT) for the first quarter of 2021 rose by 69% to Php 1.3 billion due to sustained cost management and operational improvements.  Net income also jumped by 81% to Php 909 million.  As the construction activity is recovering at a slower pace, revenues declined 6% year-on-year to Php 6.8 billion. Excellent EBIT results also translated to stronger cash generation, which more than doubled to Php 827.9 million in Q1 2021 from Php 409.1 million last year.

The Company is well prepared to address the challenges ahead by focusing on strong operational, cost discipline and building on innovation and digital solutions to deliver sustainable business results.

KEY DEVELOPMENTS

Holcim Philippines is set to offer COVID-19 vaccines to employees and their dependents in the third quarter of 2021.

The Company’s adherence to high standards of health and safety, quality, and environment management was also validated by certification body TUV Rheinland. In March, Holcim Philippines’ Bulacan Plant earned an ISO 45001:2018 certificate for Occupational Health and Safety Management System. Moreover, TUV Rheinland recertified the Bulacan Plant for ISO 9001:2015 (Quality Management System) and ISO 14001:2015 (Environmental Management System).

On the commercial side, the Company recently introduced the country’s first ever water repellent cement, Holcim Aqua X. The latest product is designed to protect structures from damage and deterioration caused by excess moisture. This follows the launch of Holcim Multifix, an easy-to-use and multipurpose mortar product to improve the quality of walls, floors, and tile installations in buildings. These are part of Holcim Philippines’ thrust to produce new building solutions to improve performance and help partners build better.

 

The Company also continues to advance in the digitalization of its business with a remarkable growth in transactions over customer portal Easybuild. Around 80% of all cement orders in Q1 2021 are now made through Easybuild. Payments over the platform have also ballooned more than three times from the previous year. The stronger utilization of Easybuild was driven by enhancements to the platform that make it easier for customers to get updates, track orders, complete transactions, and share feedback with Holcim Philippines.

Finally, Holcim Philippines participated in government and private sector roundtable discussions on sustainability to raise awareness on its commitments and achievements on Climate Action and Circular Economy. In March, the Company shared its contributions to addressing the country’s plastic waste management challenge through co-processing operations in a webinar by the Department of Trade and Industry. Holcim Philippines also shared co-processing’s potential to reduce the carbon footprint of cement manufacturers in a Department of Environment and Natural Resources forum on climate change.

 

KEY FIGURES (IN THOUSANDS)

First Quarter

 

Jan-March 2021

Jan-March 2020

Net Sales

Php  6,805,794

Php  7,270,481

EBITDA

Php  1,716,502

Php 1,195,584

EBIT

Php  1,274,133

Php 755,977

Net Profit

Php  909,347

Php 501,543

Cash from operating activities

Php 827, 967

Php 409,115

*For more information on our financial performance this quarter, you may check our page at the Philippines Stock Exchange website or the section on disclosures on our Company’s website.