EAGLE Cement Corp. said net profit was P1.1 billion in the first quarter, up 3% from a year earlier, due to higher sales.
The company said revenue was P4 billion during the quarter, up 6% year-on-year.
It said efficient production allows it to raise volumes and serve more markets.
“The growth rides on the back of the company’s increase in sales volume which is attributed to Eagle’s long standing cost-effective and efficient production grounded on owning the country’s most modern end-to-end cement manufacturing plant. The higher cement output, coupled with the company’s highly capable team, contributed to Eagle’’s ability to meet demand in more markets,” Eagle Cement said in a statement.
Eagle Cement’s third production line in Bulacan is set to being operations this year. The third line will add two million metric tons to the current annual production capacity of 5.1 million metric tons. The Bulacan line will serve northern and central Luzon markets, as well as new markets in MIMAROPA (Mindoro, Marinduque, Romblon, Palawan), Bicol, and Western Visayas.
The company has said that the Bulacan facility is expected to increase sales by 35% this year, giving the company market share of around 25%.
A fourth production line in Cebu will be operational by 2020 to add another two million metric tons of production, to bring annual capacity to about 9.1 million metric tons.
“We remain confident about the future as private consumption continues to drive our economy coupled with the infrastructure boom. We are constantly looking at opportunities to grow the company, at the same time continuously manage costs to maintain our competitiveness,” Eagle President and Chief Executive Officer Paul Ang said in a statement.
For 2018, Eagle has a net profit target of P6.5 billion.
Eagle Cement rose P0.02 or 0.13% to P15.86. — Patrizia Paola C. Marcelo
