Positive volume growth from robust public investments in infrastructure
Company to continue improving operational efficiencies to mitigate challenges from rising energy costs and ensure reliable supply to customers
John Stull, President and CEO of Holcim Philippines, Inc said: “Demand conditions are improving as the government continues to ramp up infrastructure investments. However, its positive impact on our financial performance was not enough to offset higher energy costs and weaker cement prices brought by intense competition.”
“Nonetheless, we are optimistic about the construction industry’s prospects given the government’s commitment to the ‘Build. Build. Build’ program. Our company is well positioned to support this by providing reliable cement supply and rolling out innovative building solutions. At the same time, we will continue to improve and strengthen our cost management efforts centered on raising the efficiency of plant and logistics operations.”
Cement sales volumes rose 7% in Q1 2018 versus same period last year due to increased construction activity nationwide, although revenues were down 2.7% to PHP 8.6 billion due to the impact imports had on pricing.
Operating EBITDA and net income, meanwhile, reached PHP 1.3 billion and PHP 700 million, respectively in Q1 2018. The company’s Q1 2018 profits are 278% higher than its Q4 2017 results and the highest since Q3 2017, which highlights the steady improvement of the company’s performance.
Holcim Philippines appointed John Stull, former head of LafargeHolcim’s cement operations in the United States, as President and CEO on April 20. The company has also started to pilot its new building solutions for infrastructure in Mindanao. The region is set to receive the biggest share of the government’s infrastructure budget this year.