MANILA, Philippines — A number of cement companies in the Philippines continued to post dismal performance in the third quarter.
Cemex Holdings Philippines (CHP), for instance, incurred a consolidated net loss of P70 million in July to September, a reversal of the P202 million net income in the same period last year.
“Higher input-cost inflation continues to be a challenge for the company. We are implementing several initiatives to improve our profitability and deliver value for our customers and shareholders.
One initiative is the recent launch of CEMEX Go in the Philippines, a first-of- its-kind, end-to-end, digital commerce platform that provides a seamless experience for CHP’s customers in placing and tracking orders, invoicing and payments,” CHP president and chief executive officer Ignacio Mijares said.
This even as CHP achieved record quarterly cement sales volumes during the quarter.
Cement sales volumes rose five percent in the third quarter and 10 percent in the nine month period.
CHP also reported an eight percent increase in net sales during the quarter to P6 billion.
Holcim Philippines likewise reported lower third quarter earnings, declining by almost half to P176.8 million.
This brought nine-month earnings to P1.7 billion from P2.3 billion a year ago.
Net sales for the third quarter rose three percent to P8.5 billion. This brings the firm’s nine-month sales to P27.3 billion or an increase of six percent year on year.
“In response to its cost challenges, the company continued initiatives to further improve business efficiency and productivity.
John Stull, president and CEO of Holcim, said “Our top line continued to grow positively in the third quarter, thanks to our ongoing successful commercial initiatives. Results though were partly impacted by inclement weather tempering demand and pricing pressures.
However, our financial performance continued to be affected by the steady rise in the costs of fuel, power and distribution as well as imported production inputs caused by the peso’s depreciation,” he said.