Holcim sees sharp Q3 sales recovery but overall profits down on one-off impact

Holcim Philippines saw a sharp recovery in sales in the third quarter of the year while revenues during the nine-month period slipped, pulling down profits that were already impacted by one-off expenses.

The cement giant said third quarter sales of P6.9 billion, which was up 7 percent from last year and the strongest showing in 2022, came despite “softer” demand.

“The company is continuously engaging customers and building industry decision makers to highlight the superior value of its blended cement products in different construction applications and its positive impact on the environment,” Holcim Philippines said in a statement on Thursday.

Financing expenses and one-off costs pulled down January to September profits to about P487 million from P2.3 billion in same period in 2021. Sales during the period shed 5 percent to P19.1 billion.

Holcim Philippines said margins during the nine-month period were also hit by higher energy prices and lower volume.

Adding pressure to earnings was the settlement of a dispute with former contractor Seasia Nectar Port Services over the valid termination of their port services agreement.

Holcim Philippines said the underlying business remained strong as nine-month profits reached nearly P1.2 billion when removing the impact of one-off items.

Meanwhile, the company underscored its various waste management programs and investments on digital operations.

For example, Holcim Philippines said it installed sensors on its facilities and fleet to optimize performance and maintenance activities.

“Our operational and commercial excellence initiatives focused on sustainability and innovation are increasingly driving business results. Our positive momentum gives us confidence to further raise operational efficiency and expand offering building solutions with lower environmental footprint and better construction performance,” Horia Adrian, president and CEO of Holcim Philippines, said in a statement.

“These initiatives have allowed us to weather challenging business conditions and be better

prepared for opportunities as the market improves. We are focused and ready to further drive

growth,” he added.

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