Holcim profit up to P3.6 billion last year

MANILA, Philippines — Holcim Philippines Inc. posted a net profit of P3.6 billion last year, up 41 percent despite slow construction activity.

Revenue, however, fell to P33.5 billion from P35.6 billion in 2018.

Operating EBITDA likewise jumped 36.7 percent to P6.7 billion as the company benefitted from initiatives to raise efficiencies and improve costs across all areas of the business.

A more favorable product mix and the steady contribution of its aggregates unit also helped business performance, said John Stull, president and chief executive officer of Holcim Philippines.

 “We made significant progress in improving our company’s ability to deliver strong profitable returns to our shareholders last year. Our sustained focus on operational efficiency and cost discipline for the past years lifted our bottom line,” Stull said.

Moving forward, Stull said Holcim is well positioned to deliver sustainable and healthy growth to shareholders and continue support to the country’s development.

Stull said the company has benefitted from the completion of its capacity expansion projects, commercial innovations and stronger cost and efficiency mindset.

In the fourth quarter alone, net profit more than doubled to P1.7 billion while revenue rose 17.4 percent to P9.8 billion. EBITDA surged 66.9 percent to P2.5 billion.

Last year, Holcim Philippines completed upgrades to its plants in La Union, Bulacan and Davao which raised its annual cement production capacity to 10 million metric tons.

In March, the company officially launched nationwide Solido, a blended cement designed as a better alternative to ordinary Portland cement for roads and infrastructures.

Solido sales became a significant portion of Holcim’s product mix in 2019 as customers shifted to this option in recognition of its superior strength and durability for its application.

Holcim is one of the country’s major cement players.

San Miguel Corp. has won the bid to acquire Holcim Philippines, but the Philippine Competition Commission (PCC) is still reviewing the transaction. The PCC expects to conclude its review by March 10.