Robust demand boosts Eagle Cement 2019 profit by 25% to P 6B
Ang family-led cement maker Eagle Cement Corp. grew its net profit last year by 25 percent to P6 billion, citing robust private consumption that fueled a double-digit expansion in sales volume.
“Our strong growth [last] year is a proof of the company’s solid strategy and soundness of our business model helped by the strong support from our customer base.
We keep our positive stance that demand will eventually pick up once the enhanced community quarantine is lifted by the government and we remain committed to delivering high-quality cement to both private and public sectors as soon as this happens,” Eagle president and chief executive officer John Paul Ang said in a press statement on Monday.
Eagle’s net sales increased by 20 percent to P19.8 billion as sales volume grew by 16 percent, driven mostly by demand from the private sector.
Gross profit ended at P8.7 billion, 20 percent higher than the previous year, with a margin of 44 percent.
Cash flow, as measured by earnings before interest, taxes, depreciation and amortization (Ebitda), rose by 16 percent to P7.9 billion, translating into an Ebitda margin of 40 percent.
For the fourth quarter alone, Eagle grew its net sales by 5 percent to P4.5 billion. Ebitda increased by 5 percent to P1.8 billion. Margin was kept at 40 percent, beating industry peers.
Total assets ended the year at P49.1 billion, rising by 8 percent. Total liabilities went down by 7 percent to P11.7 billion while stockholder’s equity rose by 14 percent to P37.3 billion.
“Our financial and operating strategy enables us to maintain an optimal and healthy financial condition, which aids us in withstanding any external adversities and allows us to thrive under an increasingly volatile market environment,” Ang said.
Eagle is seen on track to complete its fifth mill, expanding its Bulacan province plant’s annual cement output to 8.6 million metric tons by 2020.
“Our aggressive approach in expanding our capacity has worked well for Eagle since we started our operations 10 years ago. We have a strong edge to foray deeper in our existing markets and potential key growth markets in the country given our increasing capacity. We will keep pace with the government’s aggressive goals to improve the country’s economic landscape through infrastructure development,” he added.
Meanwhile, in view of the enhanced community quarantine amid COVID-19, Ang assured the public that the health and safety of its people, clients and community were the company’s utmost priority.
“The company has a business continuity plan in place and there are guidelines and strict measures to contain the situation. We have allocated funds to support the needs of our workforce and the community where we operate as well as extend help to our partners during these difficult times,” he said. INQ
