Holcim Philippines reports strong Quarter 3 2019 performance

25 October 2019
 
  • Quarter 3 Operating EBITDA jumps 84% year-on-year on better costs and improved prices
  • New dispatch capacity in Bulacan strengthens ability to serve customers’ growing needs
  • Aggregates business EBITDA grows by 38% year-on-year

 

John Stull, President and CEO of Holcim Philippines, Inc. said: “Our earnings improvement continues in the third quarter resulting in strong growth in the first nine months of the year despite lower sales revenues. Our intensified focus on cost and operational efficiency across all our operations has allowed us to sustain high performance levels amidst a still muted market environment. We have seen better pricing and a favourable product mix. With our new and improved cement production and dispatch facilities commissioned this year, we are ready to capture opportunities as the market grows and deliver innovative products and solutions to our customers.”


FINANCIAL PERFORMANCE

Cement demand has started to pick up in the third quarter as government resumed its infrastructure spending. However, sales volumes were still lower than the third quarter of 2018 despite improved pricing resulting in lower net sales of Php 8.3 billion from Php 8.5 billion in the same period last year.

Still, the company’s Operating EBITDA almost doubled year-on-year to Php1.2 billion on cost improvements across all our operations coupled with better prices of cement and aggregates. Net income for the third quarter surged to Php 457.2 million from Php176.9 million the previous year.

As of year-to-date September, Holcim Philippines sales have reached Php 23.7 billion from Php 27.3 billion last year. Operating EBITDA rose 23.4% to Php 4.2 billion helped by the strong performance of aggregates, which grew by 38% on better prices despite lower volumes caused by the public construction slowdown. Net income grew by 8% to Php 1.9 billion.

KEY DEVELOPMENTS

The company opened new dispatch and loading facilities in its Bulacan plant in August improving its ability to serve customers in Central and South Luzon and the National Capital Region. These along with new production assets in La Union and Davao opened ahead of schedule earlier this year further strengthens Holcim Philippines’ ability to supply customers.

Sales of Solido, Holcim Philippines’ latest blended cement product launched in March, have steadily increased following positive reception from customers. A blended cement designed for roads and light infrastructures, Solido is a result of the company’s commitment to introduce innovative products to help customers build better, while improving its production efficiency and environmental performance.

 

KEY FIGURES (IN THOUSANDS)

 

Nine Months

Third Quarter

 

Jan-Sept. 2019

Jan-Sept 2018

July-Sept. 2019

July-Sept 2018

Net Sales

Php 23,678,589

Php 27,267,788

Php8,284,955

Php8,516,826

Operating EBITDA

Php 4,198,540

Php 3,402,644

Php1,167,435

Php634,569

Net Profit

Php 1,877,929

Php 1,740,808

Php 457,454

Php 176,881