Record profits for Holcim Philippines

Record profits for Holcim Philippines
21 February 2014

Holcim Philippines registered record earnings and sales last year amid strong market conditions and effective cost management. Meanwhile, the company has said it will delay the construction of a new cement plant in Bulacan as its Swiss parent reorganises regional operations.

“Our company benefited from the good business environment, which has allowed the construction boom to persist and cement demand to thrive. Credit should also go to our people, who did their part in attaining this record performance by focusing on areas within our control such as efficiency and costs,” Holcim Philippines chief executive officer Eduardo Sahagun said.

Revenues rose by six per cent YoY to PHP28.9bn (US$648.57m), the best turnover seen by the company  in history. This was attributed to good price management and steady volumes on the continued growth of cement demand.  The profit growth was also aided by the company’s initiatives to manage costs. Profit rose 26 per cent to a new high of PHP4.559bn last year from PHP3.62bn in 2012.

The government’s investments in infrastructure and the private sector’s commercial, residential and industrial projects helped domestic sales rise by six per cent last year. For this year, Sahagun said the industry would likely grow by 5-8 per cent. In anticipation of the continued growth in demand this 2014, Holcim last year upgraded the capacity of its La Union and Misamis Oriental plants and reactivated its idle grinding facility in Batangas.

Bulacan project deferred
The company has, however, deferred plans to build a new cement manufacturing plant in Bulacan province as its parent company reorganises its regional operations ahead of the Asean economic integration in 2015.

Sahagun said Holcim Ltd's new regional head will need more time to study the construction of a new plant in Bulacan in light of the looming regional integration. This may allow the local unit to import cement from its counterpart in Vietnam, which has significant excess capacity.

Published under Cement News