· Holcim Philippines net profits more than doubled as costs were managed well as sales surged amid heavy cement demand.
· Improved plant and logistics performance were keys in delivering the strong volumes needed by the market.
Construction materials company Holcim Philippines Inc.’s profits more than doubled in the third quarter due to strong sales from sustained construction activity into the rainy season.
Holcim Philippines net sales rose by 23.2% year-on-year to Php9.99 billion from Php8.11 billion. This brings the company’s sales tally from January to September to Php27.99 billion, higher by 9.44% from the previous year.
Cement demand was healthy nationwide and strongest in the Visayas and Mindanao, with no let-up in the building activity by both the private and public sectors.
With the company’s robust revenues and effective cost management, third quarter net income ballooned to Php1.53 billion from Php721.96 million in the same period last year. Holcim Philippines profits for the nine months of 2015 have grown by 12.67% to Php4.55 billion from Php4.04 billion last year. This translates to Php0.71 earnings per share from Php0.63 in 2014.
Holcim Philippines Country Chief Executive Officer Eduardo A. Sahagun said the company’s third quarter results were made possible by the improved performance of the plants, which can now operate longer before maintenance activities.
“Demand usually dips during the rainy season but this time, we experienced even stronger demand in the third quarter. Under these conditions, it is critical to sustain operations to support the market and we did so due to the steady investments for better plant performance,” he said.
Sahagun said logistics operations also improved with more flexibility to supply the National Capital Region through its newly acquired Holcim Manila Terminal.