Leading cement maker Holcim Philippines saw a 9-percent year-on-year drop in first semester net profit to P1.42 billion as delayed passage of the national budget gnawed on infrastructure spending and cement demand.
For the second quarter alone, net profit dropped by 17 percent year-on-year to P716.6 million, Holcim disclosed told the Philippine Stock Exchange.
Net sales in first semester fell by 17.9 percent year-on-year to P15.4 billion, reflecting the sluggish cement demand. Its aggregates business, however, grew sales by 22 percent to P1.1 billion on improved product mix and prices.
For the second quarter alone, Holcim’s net sales fell by 28 percent year-on-year to P7.3 billion.
Despite lower sales compared to 2018, Holcim’s operating cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) rose by 9.5 percent year-on-year to P3 billion.
Operating Ebitda in the first half rose by 9.5 percent to P3 billion while Ebitda margins grew by 5 percent.
In June, Holcim completed the expansion project of its Davao plant to raise its cement production capacity to 2.4 million metric tons.
In May, San Miguel Corp. won a bidding to acquire 85.7 percent of Holcim Philippines for $2.15 billion, subject to closing adjustments and regulatory approval. —DORIS DUMLAO-ABADILLA