Holcim Philippines net profit up 58% in 2Q

Holcim Philippines net profit up 58% in 2Q
Published: 04 August 2009

Holcim Philippines posted a 58 per cent growth in second-quarter profit from a year ago on the back of robust demand from large-scale infrastructure projects and low-cost housing across the country.

Holcim reported yesterday a net profit of P1.2bn for the April-to-June period, higher than the P742m in the same period last year. This brought the first quarter net income to PHP2bn, up 66.7 per cent from the previous year’s PHP1.2bn.

“It was a semester of exceptional performance and, with the government’s strong focus on infrastructure, coupled with continuing demand for housing, we hope to sustain this for the balance year,” Holcim Philippines chief operating officer Ian Thackwray said in a statement.

While North Luzon still accounted for the biggest volume and demand increased across all regions, Holcim reported it was from Mindanao where growth was “exceptional.”

“This was largely due to infrastructure projects funded by the government’s stimulus package. Robust housing construction activity was also sustained, following strong OFW (overseas Filipino worker) remittances and declining interest rates,” the company reported.

For the second quarter alone, revenues were up by 14 per cent to PHP6bn from a year ago, outpacing the industry-wide cement demand of 2.9 per cent for the same period.

The company’s cash flow, as measured by its EBITDA, also jumped 33 per cent to PHP2.2bn in the second quarter from last year’s PHP1.6bn.

Holcim generated revenues of PHP11.4bn for the six-month period, up 20 per cent from the PHP9.5bn reported a year ago. The company also boosted its net working capital, generating PHP4.1bn cash flow from its operating activities during the period.