Republic Cement Corp said its net profit in 2006 nearly tripled to PHP2.63bn, from PHP900.4m in the previous year, boosted by higher sales, lower financing charges and an income tax gain.
The cement producer, 39.22% owned by Lafarge, said sales rose 4.5% on year to PHP12.57bn while operating expenses declined 4% on year to PHP1.12bn. Other income from operations rose to PHP480m from PHP99m as the company sold non-operating assets, mainly old wet production lines.
Republic Cement said overall cement market demand remained flat in 2006, with the increase in construction activity primarily coming from the private sector, given the government’s limited spending.
"This improvement is attributed to operational efficiencies and certain one-off exceptional gains," the company said.
It said financing costs declined to PHP905.4m last year from PHP1.26bn in 2005.
Republic Cement said net profit for 2006 helped narrow the deficit in its shareholder equity to PHP1.21bn, from PHP3.91bn in 2005.