Holcim Philippines reports strong 2Q net profit

Holcim Philippines reports strong 2Q net profit
14 August 2013

Holcim Philippines reported better-than-expected rise in second quarter net profit on the back of seasonal demand and effective cost controls. It is now preparing to restart its Batangas grinding unit next month to better serve expected rises in demand from the public and private sector.

Net income rose 33.88 per cent to PHP1.62bn (US$37m) in the April-June 2013 period from PHP1.21 as construction picked up during the summer months, supported by steady plant operations and improved cost management. Speaking to reporters, Holcim Philippines President and CEO, Eduardo A Sahagun, said that the second quarter growth was not unexpected as it is traditionally a strong period, but “growth was better than we expected.”

Net sales increased by 12.48 per cent to PHP8.11bn from PHP7.21bn, while the cost of sales rose 9.01 per cent to PHP5.08bn from PHP4.66bn.

Mr Sahagun also noted that the company has benefitted from robust construction activity due to favourable weather conditions, the early release of government funds for infrastructure and election spending.

The company is set to reopen its Batangas grinding unit next month, involving an investment of US$12m. The plant which will boost the company’s capacity by 1Mta to bring its total cement volumes to close to 9Mta.

It is also seeking approval from its parent company for the construction ofa  2-2.5Mta cement plant in Norzagaray, Bulaca. If the project proceeds as planned, it is expected to begin operations in 2017.

Published under Cement News