• Holcim Philippines posted higher sales despite increased competition built on customer loyalty in a period of strong construction activity.
• Strong revenues and effective cost management efforts lifted the company’s earnings.
• Holcim Philippines increased cement production capacity and is introducing more construction solutions from the LafargeHolcim Group to help the country build better.
Construction solutions provider Holcim Philippines, Inc. posted another strong financial performance in 2016, amid increased competition from local players and imports attracted by the country’s robust economy and strong building activity.
Holcim Philippines’ 2016 revenues grew by 7.5% to Php 40.3 billion from the previous year on higher cement volumes and price.
With higher revenues and manufacturing and distribution excellence, operating EBITDA increased by 14% to Php 10.8 billion from Php 9.5 billion a year ago.
Net income reached Php 6.8 billion compared with 2015’s Php 8.1 billion, which benefited from a one-time gain of Php 2.6 billion from the revaluation of Holcim Philippines’ investment in an affiliate. Without the one-off item in 2015, profits were higher by 24% in 2016 on effective management of manufacturing costs even as the company raised its cement production capacity.
Holcim Philippines Chief Operating Officer Sapna Sood said:
“Ensuring stable supply is critical in these times of high building activity. Last year, we demonstrated our commitment to keep the market supplied by raising our production capacity and leaning on our strong regional network. As a result, we showed our customers we are a reliable partner which helped us compete even with the entry of new players.”
“Aside from raising our production capacity, we are well positioned to introduce more value-adding construction solutions from the LafargeHolcim Group to help the country build better as it embarks on more sophisticated construction projects.”