CONCREAT Holdings Philippines, Inc. (CHP), the cement producer led by the Consunji group and formerly known as Cemex Holdings Philippines, Inc., is banking on recovering demand and opportunities arising from the national housing backlog to drive a turnaround within the next three years.
“Our team in CHP is committed to find solutions to turn the company around in three years’ time,” CHP President and Chief Executive Officer Herbert M. Consunji said during the company’s virtual annual stockholders’ meeting on Monday.
Mr. Consunji said the company is cautiously optimistic about its prospects as it identifies opportunities. For 2024, CHP widened its net loss to P23.4 billion, as revenue declined by 7% to P16 billion due to weak demand.
“We believe demand will recover over the medium term. Infrastructure continues to be a government priority, backed by spending commitments of at least 5% of gross domestic product,” he said.
“Cement consumption per capita in the Philippines remains well below regional benchmarks, suggesting strong room for growth. And the projected housing backlog, expected to reach 10 million units by 2028, presents significant upside for the industry,” he added.
However, Mr. Consunji said near-term challenges could constrain the company’s recovery.
“The cement business is highly competitive, and global challenges from trade tensions to recession risks and geopolitical uncertainty can weigh down costs, pricing, and demand,” he said.
“Turning around a company takes time, discipline, and consistency. But we are confident that the steps we are taking today are steering CHP toward strength, efficiency, and long-term competitiveness,” he added.
Consunji-led firms DMCI Holdings, Inc., Dacon Corp., and Semirara Mining and Power Corp. acquired a majority stake in CHP in December last year under a $272-million deal.
“The road ahead will not be easy, but I have full confidence in our people’s ability to bring CHP back to financial strength and market relevance,” CHP Chairman Isidro A. Consunji said during the meeting.
Last week, CHP announced the launch of a new production line at its Solid Cement Plant in Antipolo City, raising its total annual plant capacity to 7.2 million metric tons, up 26% from 5.7 million metric tons.
CHP is a 51%-owned subsidiary of DMCI Holdings. It produces cement under the brands APO, Rizal, and Island, including ordinary portland cement. The company’s subsidiaries include APO Cement Corp. and Solid Cement Corp.
On Monday, CHP shares rose by 2.29% or three centavos to P1.34 each. — Revin Mikhael D. Ochave
