Holcim profit rose 13% in ’14 to P5.1B
Holcim Philippines, the country’s leading cement manufacturer, considers 2014 a banner year as net profit rose by 12.9 percent to P5.1 billion on the back of robust construction activities.
The construction industry grew by double-digits last year to keep cement in high demand. With this, Holcim’s cement sales volume rose by 12.3 percent last year to help the company achieve revenues of P32.6 billion, 13 percent higher compared to the previous year.
Holcim thus managed to grow faster than the 9.5-percent expansion of the entire cement industry last year.
The overall industry nevertheless picked up pace from the sector’s 5.6-percent growth posted in 2013.
“The healthy economy continues to provide opportunities for our business to thrive. Last year, with the sustained construction boom, the challenge was ensuring that there is enough supply so these projects are completed on time and on budget. Our company is proud to have met this challenge and contributed to the country’s development,” said Holcim Philippines president and chief executive officer Eduardo Sahagun.
At the same time, Sahagun said effective cost management in manufacturing, distribution and support groups allowed the company to minimize the impact of expensive imported clinker on net profit.
Cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) went up by 15.1 percent to P8.8 billion.
Given the double-digit growth in Holcim’s net profit last year, return on equity (ROE) likewise rose to 23.6 percent last year from 21.7 percent in the previous year.
For 2015, Sahagun said the company would focus on continuing to improve its ability to supply the market through efficiency initiatives in manufacturing and logistics.
He added that Holcim Philippines would sustain its commitment to deliver products and services that keep customers delighted.
Sahagun said higher government budget for infrastructure, sustained private sector expansion and faster implementation of public-private partnership projects would provide the cement industry with numerous opportunities.
Holcim Philippines, which is part of the global cement group Holcim, operates four cement plants in La Union, Bulacan, Misamis Oriental and Davao.
It has more than 1,700 employees in the Philippines and produces four cement products: Holcim Excel, Holcim WallRight, Holcim Premium Bulk and Holcim 4X. Its products are sold in bags, jumbo bags and in bulk. Doris C. Dumlao
