Lower public infrastructure spending, tighter industry competition and higher production expenses led to a dip in the financial performance of building solutions provider Holcim Philippines, Inc. in the first quarter of 2017.
The Company’s net sales for the first three months of 2017 reached Php 8.8 billion, lower by 12% year-on-year due to the challenging business environment. Holcim Philippines also booked Php 1.7 billion in operating EBITDA compared to Php 2.5 billion in the first quarter of 2016 due to higher costs from rising fuel prices and a weaker peso. As a result, net income reached Php 939.4 million from Php 1.5 billion the previous year.
Holcim Philippines estimates that cement demand in the country slightly declined from that of the same period last year, when pre-election spending on infrastructure was accelerated. However, the company is positive about the outlook for the rest of the year.
Holcim Philippines is implementing transformative initiatives that address current and anticipated challenges. These include initiatives to further improve customer services levels and the introduction of innovative construction solutions to help the country build better in response to the government’s infrastructure drive.
Holcim Philippines COO Sapna Sood said:
“Infrastructure and innovation are cited as pillars for the country’s 2017 productivity growth forecast at 6.4% GDP growth. These pillars are strengths of Holcim Philippines that we believe will buoy the company and make a big difference for customers. This region has been showing strong growth, giving us the optimism to continue to transform and serve our customers even better.”