Holcim Philippines resilience continues in 3rd Quarter

30 October 2020
 
  • EBITDA and net profits rise in Quarter 3 on agile cost and efficiency measures
  • Initiatives focused on our HEALTH, COST & CASH program deliver benefits to business and prepares the company for the market’s recovery

 

John Stull, President and CEO of Holcim Philippines, Inc. said: “We are proud of our organization’s tremendous resilience amid the unprecedented challenges posed by COVID-19. While there are challenges ahead, we remain confident that the steps to keep our people healthy and safe, preserve cash, and be prudent on costs enable us to emerge stronger from this crisis. Opportunities abound for our business as the construction industry will play a key role in the country’s recovery from the pandemic. Moving forward, we are ready to support our partners build better and deliver great value to all our stakeholders.”


FINANCIAL PERFORMANCE

Holcim Philippines grew its third quarter EBITDA by 28.1% to Php 1.5 billion from Php 1.2 billion in the same period last year, and also rebounded from its second quarter driven mainly by robust cost management and efficiency improvement initiatives across the business. For the third quarter, net profits jumped by 34.2% year-on-year to Php 613.7 million from Php 457.5 million.

From January to September 2020, the company generated Php 3.2 billion in EBITDA despite the challenging business environment.  Net profit as of end September 2020 stood at Php 1.03 billion.

Business conditions remained challenging although there were noted improvements in the market in the third quarter. However, this recovery is not enough to offset yet the impact of the pandemic-induced stoppage and slowdown of operations from March to May, the peak season of construction.

With these, net sales as of end September declined by 21% year-on-year to Php 18.8 billion. For the third quarter of 2020, net sales reached Php 7.4 billion from Php 8.3 billion in the same period last year.

 

KEY DEVELOPMENTS

In September, Holcim Philippines officials participated in briefings with leaders from government and the private sector to reiterate the company’s commitment to support Mindanao’s continued development. Holcim Philippines officials highlighted the company’s strengths in health and safety, commercial innovation, and community partnership as key contributions to the recovery from COVID of Mindanao, whose development the government has promised to fast track.

On the product side, our blended cements Holcim Solido, Holcim Excel, and Holcim Wallright, which are designed for infrastructure, general purpose and masonry, respectively were listed in September on the Green Building Procurement Hub, a website that identifies products, services, and building spaces with green credentials. Green Building/PH is a service provided for the members of the Philippine Green Building Council, an organization that accredits buildings for following or exceeding environmental standards. These blended cements are produced with lower greenhouse gas emissions and overall carbon footprint compared with Ordinary Portland Cement.

Finally, the company sealed partnerships with the Manila Water Foundation and the League of Corporate Foundations to strengthen its CSR programs for Water Access, Sanitation and Hygiene that help its communities against COVID-19. The company turned over information campaign materials on proper handwashing to neighbours in Mabini, Batangas on September 10. Similar information materials will be turned over to the rest of its host communities for all Holcim plants by the fourth quarter this year under its HELPS corporate citizenship campaign.

 

KEY FIGURES (IN THOUSANDS)

 

Nine Months

Third Quarter

 

Jan.-Sept. 2020

Jan.-Sept. 2019

July-Sept. 2020

July-Sept. 2019

Net Sales

Php 18,779,937

Php 23,678,589

Php 7,361,373

Php 8,284,955

Operating EBITDA

Php 3,201,147

Php 4,198,540

Php 1,495,685

Php 1,167,435

Operating EBIT

Php 1,820,167

Php 2,941,251

Php 1,006,133

Php 764,827

Net Profit

Php 1,027,531

Php 1,877,929

Php 613,697

Php 457,454

*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.