Holcim nets P3.7B
LEADING cement-maker Holcim Philippines booked a 21 percent year-on-year growth in first semester net profit to P3.7 billion, reflecting an fast-expanding underlying economy that required more cement for construction activities.
For the second quarter alone, Holcim’s net profit rose by 42 percent year-on-year to P2.16 billion, driven by a 14.4-percent expansion in net sales to P10.77 billion.
For the first half, revenues reached P20.8 billion, marking a 15.7-percent increase from the previous year. Operating cash flow amounted to P5.7 billion, rising by 19.6 percent from last year’s level.
In a press statement on Thursday, Holcim president and country chief executive officer Eduardo Sahagun said the company’s performance was mainly due to the strong market demand. He likewise cited various operating efficiency programs that the company started early in the year. These have begun yielding results in the second quarter, he said.
Strong demand in the second quarter was attributed to sustained public and private building activity. As such, Holcim’s operating cash flow improved by 33.3 percent in the second quarter to P3.3 billion.
But Sahagun added that the next quarter could be challenging due to the effects of seasonality on demand and logistics operations, and the power supply concerns in Mindanao.
Overall, however, Sahagun is optimistic about Holcim’s business prospects.
“The new administration’s vow to further increase infrastructure investments to 7 percent of GDP (gross domestic product) bodes well for the entire country,” Sahagun said.
“Holcim Philippines stands ready to support the country’s sustained development by working to keep the market supplied through the timely completion of our project increasing cement capacity to 10 million tons and through the introduction of more innovative construction solutions to help the sector build faster and better,” he added.
In the first quarter, the Philippines grew its GDP by 6.9 percent, making it the fastest growing economy in the region.
