LaFarge cement’s net profit up 30%, reaching P3.7B in 2013 due to high demand
Screengrab from www.lafarge.com.ph.
MANILA, Philippines — Cement-maker LaFarge Republic Inc. (LRI) grew its net profit in 2013 by 30 percent to P3.7 billion as robust demand from government and private construction activities boosted sales.
Net sales increased by 16 percent to P23 billion, which the company attributed to increased demand from private and public sectors combined with sales and marketing initiatives.
In a disclosure to the Philippine Stock Exchange on Monday, LRI said last year’s performance matched the impressive growth that the cement industry experienced in 2013 with nationwide demand reaching 19.4 million metric tons or 5.9 percent higher than that of 2012.
LRI president Renato Sunico said: “the infrastructure and other construction projects of the Government, both at the national and local levels, coupled with the sustained demand from the private and commercial sectors contributed to this remarkable growth.”
“Cost of sales increased mainly on account of higher power price and raw materials, including logistics expenses. We were able to moderate the increase by utilizing local coal in our kilns, which have lower prices, while at the same time increasing our use of alternative fuels. Continuing operational efficiencies also helped to partially offset the cost increase. Notwithstanding these initiatives, higher costs remain a key concern and challenge in the future.” Sunico added.
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