Cement firm nets P3.7B

Leading cement-maker Holcim Philippines booked a 21-percent year-on-year growth in its six-month net profit to P3.7 billion, reflecting a fast-expanding domestic 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, revenue 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 statement, Holcim president and country chief executive officer Eduardo Sahagun said the firm’s performance was mainly due to strong market demand.  He also cited various operating efficiency programs that Holcim started early in the year.

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 said the next quarter could be challenging due to the effects of seasonality on demand and logistics operations, and 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.

In the first quarter, the Philippines grew its GDP by 6.9 percent, making it the fastest growing economy in the region. Doris Dumlao-Abadilla