Holcim Philippines reports resilient performance

30 July 2020
 
  • Agile cost reduction and cash conservation mitigated impact of COVID-19
  • All sites operating under strict health precautions

John Stull, President and CEO of Holcim Philippines, Inc. said: “The ongoing pandemic has caused challenges to the country. At Holcim Philippines, we took quick and decisive actions focused on safeguarding the health of our people, controlling costs, and preserving cash. This has helped us to mitigate the COVID-19 impact on our company. We remain optimistic about the future and our ability to deliver great value to our shareholders, customers, and communities while maintaining a healthy and safe workplace.”


FINANCIAL PERFORMANCE

While there was a recovery in June, revenues for first half of 2020 declined by 25.8% to Php11.4 billion from Php15.4 billion in the same period last year as volumes and prices fell after construction activity slowed due to measures to control the COVID-19 pandemic.

With the lower revenues, EBITDA slid by 43.7% year-on-year to Php1.7 billion from Php 3.0 billion despite the company’s stern measures to manage all costs. Net income reached Php414 million for an earnings per share of Php0.06.

 

KEY DEVELOPMENTS

The Department of Public Works and Highways said in July that major infrastructure projects are on track and the government’s “Build, Build, Build” program will play a key role in growing the economy amid the pandemic.

Holcim Philippines is ready to support partners in this effort. Quick actions to keep people safe against COVID-19 in its operations enabled the company to quickly reopen all its manufacturing facilities and ramp up operations in Luzon and Davao after the local and national governments eased quarantines in May. Cost and efficiency initiatives across the business are also continuing highlighted by the recent completion of maintenance activities in a number of its facilities with minimal support from third-party contractors.

The company is also ready with commercial innovations to better support and serve partners. Digital platforms have enabled Holcim Philippines to continue providing seamless service to customers amid the pandemic. The company’s “Easybuild” platform allows customers to safely and conveniently place orders, check deliveries, settle transactions and review credit history with Holcim. Utilization rate has increased to 91% as more customers use “Easybuild” given its advantages.

On the product side, the company is continuing to work with partners through electronic consultations to use the right product for the right application focused on its general purpose cement “Excel” and infrastructure and road cement “Solido.”

Holcim Philippines also plans to make available its 24-hour concrete “SuperFastCrete (SFCrete)” across the country. Currently used for road works within Metro Manila, “SFCrete” can help local contractors meet project deadlines despite fewer people onsite due to social distancing measures.

Finally, the company is committed to continue supporting its communities and partners affected by the pandemic. Through its corporate citizenship campaign “Holcim Helps”, the company has provided hygiene products, food items, medicines, and PPEs to local communities affected by COVID-19. As of July 10, “Holcim Helps” initiatives have benefitted 45,000 individuals.

 

KEY FIGURES (IN THOUSANDS)

 

First Half

Second Quarter

 

Jan.-June. 2020

Jan.-June 2019

Apr.-June 2020

Apr.-June 2019

Net Sales

Php 11,418,564

Php 15,382,033

Php 4,148,083

Php 7,278,542

Operating EBITDA

Php 1,705,462

Php 3,031,105

Php 509,878

Php 1,343,755

Operating EBIT

Php 814,033

Php 2,176,423

Php 58,057

Php 976,363

Net Profit

Php 413,834

Php 1,420,475

Php (87,710)

Php 716,614

*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.