Holcim Philippines reports 2019 performance

27 February 2020
 

 

  • FY Operating EBITDA jumped 37% on cost and efficiency improvements
  • Improved capacities, innovative building solutions and cost discipline to drive performance moving forward

John Stull, President and CEO of Holcim Philippines, Inc. said: “We made significant progress in improving our company’s ability to deliver strong profitable returns to our shareholders last year. Our sustained focus on operational efficiency and cost discipline for the past years lifted our bottom line. With the completion of our capacity expansion projects, commercial innovations and stronger cost and efficiency mindset, Holcim Philippines is well positioned to deliver sustainable and healthy growth to shareholders and continue our support to this country’s development.”

 

FINANCIAL PERFORMANCE

Holcim Philippines’ Operating EBITDA grew year-on-year by 36.7% to Php 6.7 billion from Php 4.9 billion in 2018 as the company benefitted from initiatives to raise efficiencies and improve costs across all areas of the business. A more favorable product mix and the steady contribution of its aggregates unit also helped business performance. Full year net income rose by 41.0% to Php 3.6 billion. The company’s revenues reached Php 33.5 billion despite slow construction activity in the first half.

In the fourth quarter, revenues rose by 17.4% to Php 9.8 billion from Php 8.4 billion in the same period last year. The company’s Operating EBITDA surged by 66.9% to Php 2.5 billion, while net profits more than doubled to Php 1.7 billion.

 

KEY DEVELOPMENTS

Last year, Holcim Philippines completed upgrades to its plants in La Union, Bulacan and Davao, which raised annual cement production capacity to 10 million metric tons.

In March, the company officially launched nationwide Solido, a blended cement designed as a better alternative to Ordinary Portland Cement for roads and infrastructures. Solido sales became a significant portion of Holcim’s product mix in 2019 as customers shifted to this option in recognition of its superior strength and durability for its application.

Holcim Philippines also completed enhancements to its digital ordering platform “Easybuild” to further ease customer transactions and expand its reach.

 

KEY FIGURES (IN THOUSANDS)

 

Full Year

Fourth Quarter

 

Jan-Dec. 2019

Jan-Dec. 2018

Oct.-Dec. 2019

Oct.-Dec. 2018

Net Sales

Php 33,486,771

Php 35,623,113

Php 9,808,182

Php 8,355,325

Operating EBITDA

Php 6,688,827

Php 4,894,789

Php 2,490,287

Php 1,492,145

Net Profit

Php 3,589,642

Php 2,545,393

Php 1,711,713

Php 804,585

*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.