Holcim Philippines records 25% fall in net profit

Holcim Philippines recorded a 25 per cent YoY drop in net profit to PHP1.6bn (US$30m) for the 1H18 period, with the results attributed to competition and higher operating costs. However, net sales increased eight per cent to PHP18.8bn on the back of an increase in sales volumes of cement and aggregates.

In the 2Q18 net sales advanced 18.5 per cent YoY to PHP10.1bn.

"Our second quarter performance showed encouraging trends which translated into significant sales growth on the back of strong building activity. However, rising costs of fuel, power and distribution combined with the peso's depreciation against the US dollar and tighter competition continued to impact our business performance in the second quarter," said John Stull, president, Holcim Philippines.

"Still, there are many opportunities for our business given the robust building activity in the country, and this is seen in our sales growth in the second quarter," he added.