Holcim Philippines reports 3Q 2018 performance

26 October 2018
 
  • Sales volumes for nine months remained strong, growing by 8% year-on-year
  • Heavy rains in September dampened demand, moderated 3Q growth
  • Cost reduction initiatives continued focus on improving business efficiency and productivity

 

John Stull, President and CEO of Holcim Philippines, Inc. said:  “Our top line continued to grow positively in the third quarter thanks to our ongoing successful commercial initiatives. Results though were partly impacted by inclement weather tempering demand and pricing pressures. However, our financial performance continued to be affected by the steady rise in the costs of fuel, power and distribution as well as imported production inputs caused by the peso’s depreciation.”

“Amid these challenges, we remain focused on sustaining the improvements in plant productivity and lowering our costs to better support the strong construction activity nationwide and deliver profitable growth to our shareholders.”

 

FINANCIAL PERFORMANCE

Net sales for the third quarter of 2018 rose 3% to Php 8.5 billion from Php 8.2 billion in the same period last year. For January to September, sales reached Php 27.3 billion, an increase of 6% compared with Php 25.7 billion reported in the same period last year.

While the company was able to mitigate some of the higher production costs through focused business efficiency and productivity measures, operating EBITDA in the third quarter of 2018 declined year-on-year to Php 634.6 million from Php 973.1 million. With interest expenses from short-term loans related to capital expenditures to raise production capacity, net income for the period reached Php 176.9 million compared with Php 337.4 million in the same period the previous year. Holcim Philippines’s EBITDA and net income for the first three quarters reached Php 3.4 billion and Php 1.7 billion, respectively.

In response to its cost challenges, the Company continued initiatives to further improve business efficiency and productivity.

 

KEY DEVELOPMENTS

In a meeting with the Department of Trade and Industry’s (DTI) leadership team in August, Holcim Philippines Chairman Tomas Alcantara and President and CEO John Stull expressed the Company’s willingness to further build up its production capacities to support the country’s infrastructure thrust. The Company also assured the DTI compliance to product standards to ensure highest quality and performance.

 

KEY FIGURES (IN THOUSANDS)

 

Quarter Ended

Nine Months Ended

 

July-Sept 2018

July-Sept 2017

Jan-Sept 2018

Jan-Sept 2017

Net Sales

Php 8,516,826

Php 8,264,976

Php 27,267,788

Php 25,663,801

Operating EBITDA

Php 634,569

Php 973,125

Php 3,402,644

Php4,436,267

Net Profit

Php 176,881

Php 337,429

Php 1,740,808

Php 2,300, 488

 

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.