EARNINGS of Eagle Cement Corp. rose 39% to P1.7 billion in the second quarter of 2019, thanks to higher volumes sold complemented by an increase in selling prices.
In a statement issued Tuesday, the listed cement manufacturer said the strong profit growth was driven by a 22% uptick in net sales to P5.1 billion.
This brought net income for the first half 44% higher to P3.3 billion. Net sales were also higher by 28% to P10.5 billion, as the company benefited from a 21% increase in sales volume.
“Our robust results in the first half of the year reaffirm our positive stance towards the industry. We will continue to leverage on the growing local cement demand led by the private sector and supported by the infrastructure push of the government,” Eagle Cement President and Chief Executive Officer John Paul L. Ang said in a statement.
With first-half results out, the company is optimistic it can post double-digit growth for the entire year.
Eagle Cement remains on track to complete its Bulacan plant’s expansion by 2020, adding 1.5 million metric tons (MT) to its annual grinding capacity. This will bring total annual cement output to 8.6 million MT for the Bulacan plant alone.
Its total cement output is further projected to reach a total of 10.6 million MT by the end of 2021, following the completion of its fourth production line in Malabuyoc, Cebu with two million MT.
The company has also obtained its Special Use Agreement for Protected Areas permit from the Department of Environment and Natural Resources Region VII, which is needed for the construction of a port in the area. This will allow the company to sell cement in the Visayas region by end-2020.
“We remain positive as reflected in our aggressive expansion to reach new growth markets as well as create a strong presence in the south,” Mr. Ang said.
Eagle Cement earlier said it will spend P3.3 billion in capital expenditures this year to continue its nationwide expansion.
Shares in Eagle Cement dropped 2.23% or 32 centavos to close at P14 each at the stock exchange on Tuesday. — Arra B. Francia