Holcim Philippines, Inc. continues to invest in raising its cement production capacity from its current 10 million metric tons to 12 million metric tons to support demand as the government rolls out its flagship infrastructure projects.
Holcim Philippines President and CEO Sapna Sood said the investments show the Company’s continued commitment to the development of the country and to serving its customers better.
“Our investments assure that Holcim Philippines will continue to provide a reliable supply of an essential building material as cement demand increases in the country as these projects come on stream,” she said.
“The Company will invest $54 million in the next two years to add two million metric tons to its current cement capacity by the first half of 2019, particularly in La Union and Davao,” she said. “This investment continues the Company’s successful debottlenecking of all sites in 2016 that already raised cement capacity to 10 million metric tons from 8.5 million.
The second quarter environment was softer compared to last year’s where volumes were significantly higher due to pre-election infrastructure spending. Holcim Philippines’ second quarter revenues reached Php8.6 billion, lower than the Php10.8 billion reported in the same period last year.
From January to June 2017, the Company booked Php17.4 billion in revenues compared to Php20.9 billion in the previous year. Revenues were impacted by a combination of lower volumes and a dynamic price environment.
EBITDA for the quarter was Php1.9 billion, lower than the Php3.3 billion achieved in the same period last year while net income stood at Php1.2 billion compared to Php2.2 billion last year.
The company’s EBITDA and net income for the first half of the year were Php3.7 billion and Php2.1 billion, respectively, compared to the first half of 2016’s Php5.1 billion and Php3.7 billion, respectively.
Lower income was mainly due to lower sales as well as higher production input costs. The Company has implemented various company-wide initiatives to further improve operational efficiency.
Aside from raising its cement production capacity, Holcim Philippines is introducing more innovative building solutions and services to help the country build faster, cost effectively and sustainably. Already, Holcim Philippines is implementing 24-hour deliveries to key customers in Luzon, with those in the rest of the country to follow within the year, for immediate product availability for new homes, farm-to-market roads, new highways and essential infrastructure.