Cement-maker Cemex Holdings Philippines Inc. saw a 71-percent year-on-year drop in first quarter net profit to P100 million due to foreign exchange losses and sluggish cement prices coupled with higher coal and power prices.
Cement volumes grew by 16 percent to a quarterly high, resulting in a 10-percent increase in net sales to P5.9 billion. However, the company saw cost of sales increasing at a faster pace at 24 percent, driven by higher fuel and power costs compared to the same period last year.
Excluding financial expenses and unrealized foreign exchange losses, Cemex’ recurring first quarter net profit fell by 20 percent to P348 million.
“We are very focused on supplying the needs of the market, given the growing Philippine economy and what we believe will be a robust construction sector for many years to come. Our results showed our ability as a company to deliver on the country’s needs,” said Ignacio Mijares, Cemex president and chief executive officer.
“Strong local demand presents both opportunities and challenges for the industry. The execution of our expansion project, and the attainment of greater operational efficiencies will be important for us to continue growing,” Mijares added.
Cemex, which trades on the Philippine stock exchange under the ticker CHP, is an indirect subsidiary of Mexico- and New York-listed CEMEX, S.A.B. de C.V., one of the largest cement companies in the world based on annual installed cement production capacity.