The country’s leading cement-maker Holcim Philippines booked a 37.4-percent year-on-year drop in first quarter net profit to P939.4 million on lower public infrastructure spending, tighter industry competition and higher production expenses.
Holcim’s net sales for the first three months of this year reached P8.8 billion, down by 12 percent year-on-year amid what it described as a “challenging” business environment, the company disclosed to the Philippine Stock Exchange on Thursday.
The company also booked P1.7 billion in operating cash flow for the first three months compared to P2.5 billion year-on-year, attributed to higher costs from rising fuel prices and a weaker peso.
Holcim estimated that cement demand in the country slightly declined from that of the same period last year, when pre-election spending on infrastructure was accelerated. However, the company is upbeat on prospects for the rest of the year.
Sapna Sood, Holcim chief operating officer, said: “Infrastructure and innovation are cited as pillars for the country’s 2017 productivity growth forecast at 6.4 percent GDP (gross domestic product) growth. These pillars are strengths of Holcim Philippines that we believe will buoy the company and make a big difference for customers. This region has been showing strong growth, giving us the optimism to continue to transform and serve our customers even better.”