Holcim bucks low-demand season
Despite the rainy months, Holcim Philippines’ net income for the third quarter surged nine times to P855 million from P97 million during the same period last year on a 30-percent growth in revenues.
Holcim said the third quarter sales were pushed by a surge in demand from government infrastructure projects as well as housing, tourism and business process outsourcing (BPO).
Holcim expects the strong demand to continue until the end of the year.
Holcim posted revenues of P5.5 billion during the quarter, a traditionally low season for the cement industry, against P4.2 billion in the same period last year.
Ian Thackwray, Holcim Philippines chief operating officer, said Holcim experienced volume growth across all regions.
Industry demand grew at a monthly average of 18 percent.
Holcim’s third quarter performance pushed revenues for the first nine months to P17 billion, up 23 percent from P13.7 billion a year ago.
This brought net income for the first nine months to P2.8 billion, more than double last year’s P1.3 billion.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 60 percent to P5.8 billion, from P3.6 billion last year.
Thackwray said that in Mindanao, Holcim posted exceptional growth due to the advantage of having cement plants in Davao City and Lugait, Misamis Oriental.
Among the biggest government projects using Holcim products are the Laguindingan airport, Cagayan de Oro port, and major roads and bridges in Davao Oriental, Maguindanao and Agusan del Norte.
"Infrastructure is key to economic development and it is heartening to see that Mindanao is getting much-needed support in this area. We will continue to support government’s push to promote sustainable growth in Mindanao through efficient supply, availability and on-site delivery," Thackwray said.
Holcim Philippines has a workforce of 1,500 employees with strategically located cement plants in La Union, Bulacan, Davao and Misamis Oriental. These plants enable the company to ensure stable supply in all its markets, accounting for a clinker production capacity of 6.5 million metric tons and cement production capacity of 7.7 million metric tons per year.
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