EARNINGS of Holcim Philippines, Inc. (Holcim) surged 41% in 2019, driven by improved efficiencies and tempered costs.
In a regulatory filing yesterday, the listed cement manufacturer said its net income last year rose to P3.59 billion despite a 6% slowdown in net sales to P33.49 billion.
Cost of sales fell 9% to P27.04 billion, resulting to a 12% increase in gross profit to P6.45 billion.
Its earnings before interest, taxes, depreciation and amortization (EBITDA) stood at P6.7 billion for 2019, 37% up from the year prior.
“[T]he company benefitted from initiatives to raise efficiencies and improve costs across all areas of the business. A more favorable product mix and the steady contribution of its aggregates unit also helped business performance,” Holcim said in a statement.
During the fourth quarter, the company’s revenues climbed 17% to P9.8 billion, as EBITDA jumped 67% to P2.5 billion. Net profits during the three-month period soared 113% to P17.1 billion.
“We made significant progress in improving our company’s ability to deliver strong profitable returns to our shareholders last year,” Holcim Philippines President and Chief Executive Officer John Stull said in a statement. “Our sustained focus on operational efficiency and cost discipline for the past years lifted our bottom line.”
The company upgraded its plants in La Union, Bulacan and Davao last year to raise its annual cement production capacity to 10 million metric tons. Mr. Stull said projects like this will prepare Holcim for future growth.
“With the completion of our capacity expansion projects, commercial innovations and stronger cost and efficiency mindset, Holcim Philippines Inc. is well positioned to deliver sustainable and healthy growth to shareholders and continue our support to this country’s development,” he said.
Aside from the newly upgraded plants in La Union, Bulacan and Davao, Holcim also operates facilities in Batangas and Misamis Oriental. The company is part of the global LafargeHolcim Group which has a footprint in 80 countries.
The Philippine unit of Holcim is in the process of being acquired by listed conglomerate San Miguel Corp. The $2.15-billion deal is being reviewed by the Philippine Competition Commission.
Shares in Holcim at the stock exchange rose 48 centavos or 3.69% to P13.48 apiece on Thursday. — Denise A. Valdez
