Holcim Philippines sees sales dip in 2022

Holcim Philippines sees sales dip in 2022
27 March 2023

Holcim Philippines has reported net sales of PHP26,587m (US$489.7m) in 2022, down from PHP29,946m in the previous year. Operating EBITDA over the same period fell from PHP5412m to PHP4068m, while net profit declined from PHP2565m to PHP1643m. 

In the fourth quarter of 2022, net sales came in at PHP7475m, up from PHP6797m in the 4Q21. Operating EBITDA dipped slightly from PHP955.9m in the 4Q21 to PHP995.6m in the same period a year later, while net profit improved from PHP264.7m to PHP455.1m. 

“In the face of extraordinary challenges, our company and people displayed tremendous resilience that enabled us to deliver positive financial performance and contribute to building progress in the country,” said Horia Adrian, president and CEO of Holcim Philippines.

“Alongside a strong sales rebound in the second half and expansion of our customer base, we accelerated decarbonisation of operations driven by higher usage of alternative fuels and raw materials and production of blended cements. These achievements were key to our resilient results and long-term success anchored on our transformation into the leader in innovative and sustainable building solutions in the Philippines,” he added.  

Although the company was able to increase prices due to its commercial excellence initiatives and reduce fixed costs by 11 per cent, these were not enough to offset the extraordinary surge in fuel and energy costs, which ballooned by 60 per cent from the previous year and accounts for 64 per cent of production expenses. 

Among its sustainability highlights in 2022 was the reduction of carbon emissions per ton of cement by seven per cent from 2021, in line with its decarbonisation drive which also delivered savings of around PHP1.4bn in production costs. The achievement was driven by efficiency initiatives using digital technologies and increased production of blended cement, according to the company.

Another driver of decarbonisation was its use of alternative fuels and raw materials which increased by 20 per cent in 2022, compared to 2021. Holcim Philippines converted around a million tons of qualified wastes into alternative fuels and raw materials for cement production from industrial partners and 35 local governments nationwide. This also helped soften the impact of the surge in fuel and energy costs. 

Published under Cement News