Holcim Philippines sees 'challenging' 1Q17

Holcim Philippines sees 'challenging' 1Q17
27 April 2017

Lower public infrastructure spending, tighter industry competition and higher production expenses led to a dip in Holcim Philippines' first-quarter financial performance, the company reported today.

The company’s net sales for the first three months of 2017 reached PHP8.8bn (US$176.1m), down 12 per cent YoY due to the challenging business environment. Holcim Philippines also booked PHP1.7bn in operating EBITDA compared to PHP2.5bn in the 1Q16 due to higher costs from rising fuel prices and a weaker peso. As a result, net income reached PHP939.4m (US$18.8m) from PHP1.5bn the previous year.

Gearing up for the future
Holcim Philippines estimates that cement demand in the country slightly declined from that of the same period last year, when pre-election spending on infrastructure was accelerated. However, the company is positive about the outlook for the rest of the year.

Commenting on the outlook, Holcim Philippines COO, Sapna Sood, said in a statement: “Infrastructure and innovation are cited as pillars for the country’s 2017 productivity growth forecast at 6.4 per cent GDP growth. These pillars are strengths of Holcim Philippines that we believe will buoy the company and make a big difference for customers. This region has been showing strong growth, giving us the optimism to continue to transform and serve our customers even better.”

Holcim Philippines further added that it is implementing transformative initiatives that address current and anticipated challenges. These include initiatives to further improve customer services levels and the introduction of innovative construction solutions to help the country build better in response to the government’s infrastructure drive.

Published under Cement News