Holcim Philippines reports Q1 2020 performance

30 April 2020
 
  • Business performance significantly affected by the Enhanced Community Quarantine imposed in Luzon and Davao
  • Holcim Philippines is confident in resuming operations safely once quarantine is eased using a well-thought-out action plan anchored on its strong track record on Health and Safety

John Stull, President and CEO of Holcim Philippines, Inc. said: “Like the rest of the country, our company was significantly affected by the Covid-19 pandemic and the government’s efforts to address it. As a response, we took immediate steps to protect the health and safety of our people and partners and the viability of our business with actions focused on health, cost, and cash management.

“Our company will continue to strictly adhere to the guidance of health authorities on this matter. Once the government eases the quarantine measures, we are confident that our strong health and safety culture will enable us to protect our people’s well-being in our sites and safely resume operations to support our customers and re-start building activity in the country.”

 

FINANCIAL PERFORMANCE

Sales revenues in the first three months of the year reached Php 7.3 billion, a 10% decline from the same period last year amidst softer prices and lower volumes particularly towards the end of the quarter. The Luzon-wide Enhanced Community Quarantine imposed on 16 March 2020 to contain the spread of Covid-19 halted building activities in Luzon and slowed down construction work in the rest of the country as localised quarantine measures also hampered the movement of goods and people.

EBITDA reached Php1.2 billion and net income after tax stood at Php 501.5 million. The company continues to strictly control costs and spending as revenues remain low.

 

KEY DEVELOPMENTS

The company closed sites and facilities in Luzon in compliance with the national government directive of an enhanced community quarantine on 16 March 2020. The company also shut down its plant in Davao City following a similar action by the local government on 2 April 2020.

Guided by best practices across the LafargeHolcim Group, Holcim Philippines is preparing plans that will enable it to operate safely once the quarantine is lifted. Initiatives are focused on social distancing, personal hygiene and health checks. The company is also ready to share such best practices to partners, industry groups, and government agencies to help in the safe resumption of building activity in the country.

Furthermore, the company is shifting its corporate citizenship budget to provide medical supplies to hospitals treating coronavirus patients, and food and hygiene products to communities hosting its facilities in La Union, Bulacan, Manila, Batangas, Iloilo, Misamis Oriental and Davao City. Approximately 1,500 families and government front line workers have benefitted from the first batch of relief operations completed as of April 14.

 

KEY FIGURES (IN THOUSANDS)

First Quarter

 

Jan-March 2020

Jan-March 2019

Net Sales

Php  7,270,481

Php  8,103,491

Operating EBITDA

Php 1,195,584

Php 1,687,350  

Net Profit

Php 501,543

Php  703,861

*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.