Innovation and sustainability help sustain Holcim Q1 2022 business results

12 May 2022
 
  • Holcim delivers comparable revenues vs last year through improved prices
  • Focus on cost and operational excellence help cushion impact of inflation
  • Holcim drives innovation and sustainability to grow business for positive impact

 

 

Horia Adrian, President and CEO of Holcim Philippines, Inc. said: “Our long-standing focus on cost and operational excellence provided us a solid foundation to weather the impact of unprecedented spikes in energy prices. Additionally, our thrust to deliver more innovative and differentiated building solutions allowed us to deliver better value to our customers. We are also committed to integrating sustainability in our business for a positive environmental and social impact.”


FINANCIAL PERFORMANCE

The Company delivered Php 6.7 billion in revenues with its expanded range of building solutions that provides customers with the right application to promote the efficient use of construction materials and improve the building industry’s impact to the environment.

Elevated cost of production and distribution caused by soaring energy prices was partially mitigated by higher prices and efficiencies leading to an Operating EBIT of Php 519.8 million and Net Income stood at Php 420.6 million for the period.

To manage the adverse impacts of energy inflation, Holcim Philippines is focused on operational efficiency across all aspects of the business. The deployment of digital tools in the production process, optimization of raw materials and increasing use of alternative fuels and raw materials is helping cushion the cost inflation impact. The Company is also ramping up customer engagements, product innovations, and service improvements to better capture business opportunities.

 

KEY DEVELOPMENTS

The Company sustained its product innovation drive with its masonry cement, Holcim WallRight Prime reformulated for higher compressive strength for light structural applications and superior performance for masonry applications such as better wall adhesion and workability, high water retention to prevent cracks, and smoother finish. The product is marked with an Ecolabel to highlights its sustainability feature of having 30% lower carbon footprint than ordinary Portland cement.

Launched in March, Holcim WallRight Prime is already the fifth new product that the Company has released since December 2020 to provide innovative building solutions to customers. These new products also use fewer natural resources in line with the Company’s sustainability commitment to help the country build more with less.

In January, Holcim Philippines shared its best practices in measuring greenhouse gas (GHG) emissions from operations to support the government’s efforts against climate change. The Company joined a webinar organized by the Partnership to Strengthen Transparency for co-Innovation for the Department of Environment and Natural Resources and Japan’s Ministry of the Environment, to provide an overview of its sustainability commitments, the carbon footprint of cement manufacturing, and initiatives to contribute to the Holcim Group’s Net Zero ambition. Holcim Philippines also discussed available tools for measuring emissions, simulation of a cement plant’s carbon footprint, and the Cement Sustainability Initiative’s principles for accounting and reporting.

Finally, the Company strengthened its ability to support partners in building better structures in the country with the recent accreditation of its Bulacan Plant by the Department of Public Works and Highways as as having a facility that can test the fitness of construction materials for government infrastructure projects. The facility passed an audit on its compliance with the department’s standards on laboratory competency, quality management system, customer reliability, and products.

 

 

KEY FIGURES (IN THOUSANDS)

 

First Quarter

 

January to March 2022

January to March 2021

Net Sales

Php 6,736,887  

Php  6,805,794

Operating EBITDA

Php 960,536

Php  1,716,502

Operating EBIT

Php  519,801

Php  1,274,133

Net Profit (Loss)

Php  420,610

Php  909,347

*For more information on our financial performance this quarter, please refer to our page at the Philippines Stock Exchange website or the section on disclosures on our Company’s website.