MANILA, Philippines—Cement giant Holcim Philippines saw higher profits in 2021 as it shielded margins from higher costs by raising prices.
Holcim Philippines president and CEO Horia Adrian said “cost mindfulness” and a tighter focus on operations and innovation would protect the company’s bottomline through 2022.
“These are the foundations that enable us to continue growing profitably and contributing to the country’s development with our innovative building solutions and sustainability programs,” he said in a statement on Tuesday (March 22).
The company underscored growth last year despite challenges arising from lower demand during the pandemic and the surge in costs of energy and fuel that were key inputs in the production of cement.
Holcim Philippines said net income last year jumped over 24 percent to P2.6 billion while sales increased 3.58 percent to P26.95 million.
The company implemented a series of price increases last year to blunt the impact rising coal, fuel and power costs. This also helped Holcim Philippines increase margins last year to 20.1 percent from 18.2 percent in 2020, its annual report showed.
“Despite market pressures brought by the pandemic, weather disturbances that impacted the continuity of construction activities, and surges in energy and fuel prices, our company was able to deliver strong profit growth in 2021 from 2020,” Adrian said.
Holcim Philippines has cement manufacturing facilities in La Union, Bulacan, Batangas, Misamis Oriental and Davao.
The company is realigning its business to focus on more sustainable products and operations. Last November, it introduced Holcim ECOPlanet with a carbon footprint that was 30 percent lower than ordinary cement.
This pivot also included the upgrade of its plants in Bulacan, La Union and Misamis Oriental to further reduce carbon footprint. Holcim Philippines sealed a separate energy purchase agreement that would make it “first cement manufacturer in the country to be solar powered.”