Holcim Philippines Q3 performance driven by commercial, efficiency initiatives

• Strongest quarterly sales, 7% y-o-y revenue growth on commercial excellence thrust
• Operational efficiency softens impact of fuel and energy cost hikes
• Company focused on accelerating growth anchored on sustainability, innovation

Horia Adrian, President and CEO of Holcim Philippines, Inc. said: “Our operational and commercial excellence initiatives focused on sustainability and innovation are increasingly driving business results. Our positive momentum gives us confidence to further raise operational efficiency and expand offering of building solutions with lower environmental footprint and better construction performance.”

“These initiatives have allowed us to weather challenging business conditions and be better prepared for opportunities as the market improves. We are focused and ready to further drive growth. Our highly motivated people and our strategy aligned with the Holcim Group’s direction to Accelerate Green Growth will generate positive results and strongly contribute to building progress in the country.”

FINANCIAL PERFORMANCE 

Holcim Philippines delivered its strongest quarterly sales this year with revenues of Php 6.9 billion from July to September. This is 7% higher than the same period last year and exceeded quarterly sales of Php 6.7 billion and Php 5.4 billion in the first two quarters of 2022. The Company’s drive for innovative and value-adding solutions for customers translated to improved sales for the period despite softer market demand.

The Company is continuously engaging customers and building industry decision makers to highlight the superior value of its blended cement products in different construction applications and its positive impact on the environment.

Holcim Philippines is sustaining its focus on manufacturing and logistics excellence to manage costs caused by the unprecedented fuel and energy spikes. This has led to a steady improvement in efficient use of raw materials, energy, fuels, and water in its operations.

EBIT for the quarter reached Php 569.2 million, while net income was affected by additional financial expenses from short term loans, and the settlement of an agreement with its former port operator in July. Excluding this one-off cost, net income for the third quarter would have reached Php 526.5 million

From January to September, revenues reached Php 19.1 billion while EBIT and net income stood at Php 1.8 billion and Php 1.2 billion without the one-time expense, respectively.

KEY DEVELOPMENTS 

Holcim Philippines is accelerating digitalization initiatives under its Plants of Tomorrow and transport analytics programs to further improve operational efficiency through data-driven decision making. The Company has increased installment of sensors on its facilities and fleet to optimize performance and maintenance activities.

Holcim Philippines also continues to expand its waste management partnerships with local governments to further increase usage of low-carbon alternative fuels and raw materials and increase resilience against spikes in traditional fuel prices.  Its waste management unit Geoycle provides 28 municipalities and cities this sustainable solution, which also reduces the Company’s consumption of natural resources in cement production. As of the third quarter, the Company’s cement plants derive 20% of their thermal energy from alternative fuels.

Furthermore, Holcim Philippines sealed new three-year collective bargaining agreements (CBA) with supervisory and associate unions in its Bulacan and La Union plants. The CBAs show the strong support of the workforce to the Company’s strategy and enable the organization to focus on driving performance.

Finally, the Company’s plant in Norzagaray, Bulacan has been recognized by the provincial government as among its top taxpayers. Holcim Philippines is consistently recognized by local authorities for its tax contributions that fund essential government services for people. 

KEY FIGURES (IN THOUSANDS) 

*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.

**Net profit figures exclude the one-off cost stated above