Holcim records strong growth with 36% over-proportional Operating EBIT growth in H1

● Solid growth across business segments leads to 6% increase in net sales Operating EBIT, net income improve as sustainability delivers significant savings
● Initiatives for circularity, decarbonization, and resilient housing further strengthen Holcim business

Horia Adrian, President and CEO of Holcim Philippines, Inc. said: “Our focus on sustainability and innovation is continuing to pay off with more efficient operations and higher value offerings that are raising business performance. We are determined to further accelerate programs for decarbonization, circularity and digitalization to deliver better results and contribute to building progress in the country.”

FINANCIAL PERFORMANCE
The company’s Net Sales grew by 15% year-on-year to Php 6.3 billion in the second quarter driven by higher volumes sold across all business segments.

Operational efficiencies and cost management enabled the company to overcome higher energy prices. Guided by its sustainability direction, Holcim Philippines generated savings from more efficient logistics operations, plants’ fuel mix optimization, improved blended cement portfolio, and higher alternative fuel usage.

Furthermore, the company’s digitalization focus for operational efficiency and customer excellence continued to gain recognition with the enhancement to its customer platform by Standard Chartered Bank winning the Best Payment and Collections Solutions during the Asset Treasurise Awards 2023. The Straight2Bank Pay solution developed by Standard Chartered Bank further strengthens the company’s Easybuild platform by providing customers wider and more flexible electronic payment options, as well as greater efficiency in transaction processing to enhance service.

With these permanent operational and digitalization efficiency focus, the second quarter Operating EBIT rose by 44% to Php 514 million while net income almost doubled year-on-year to Php 479 million.

The better performance in the second quarter lifted the company’s first half results with Net Sales up 6% to Php 12.9 billion, and an over-proportional growth in Operating EBIT by 36% to Php1.2 billion, while net income grew by 26% to Php 835 million. 

KEY DEVELOPMENTS

Holcim Philippines continues to strengthen its portfolio of low-carbon blended cements to accelerate its journey towards Net Zero.
Among the highlights was the completion of the national relaunch of flagship product Excel ECOPlanet in June. The product was rebranded after the company successfully lowered its carbon footprint while maintaining its excellent construction performance.

The company also successfully launched Optimo in June, a limestone blended cement for vertical construction. The new product delivers the same building performance as conventional cement while having 10% lower carbon footprint.

Holcim Philippines is also supporting initiatives to build resilient homes in the country. In April, the Company along with resilient housing organization, Build Change and microfinance institution, Alalay sa Kaunlaran, Inc. launched a home-strengthening program for vulnerable, low-income families to build disaster-resilient homes emphasizing on the use of the right product for the right application. In the same month,
Holcim Philippines joined the inauguration of a disaster-resilient community weaving center in Batangas by Base Bahay Foundation and Kanya Kawayan Foundation that was built with ECOPlanet.

Finally, the Company shared its pledge to accelerate decarbonization and circularity in the construction industry as it joined the Department of Environment and Natural Resources in celebrating World Environment Day and Philippine Environment Month in June.

Holcim Philippines CEO Horia Adrian noted the construction industry’s key role in sustainable development given its significant environmental footprint. He shared the company’s efforts to improve efficiency of operations, introduce new building solutions with lower carbon footprint, and recycle materials to lessen consumption of virgin materials and help keep communities stay clean.

Holcim Philippines was among the seven companies that presented its environmental stewardship programs during the agency’s World Environment Day celebration led by Environment Secretary Maria Antonia Yulo-Loyzaga.

KEY FIGURES (IN THOUSANDS)