Cement producer Holcim Philippines Inc. reported a 15 percent decline in net income to P356 million in the first quarter of 2023 from the P420 million earned in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said that, excluding one-off costs related to associates, net profit is almost at par versus prior year amounting to P413 million.
Cement performance was driven by improved prices and better contributions from a wider base of customers. Furthermore, the Company’s other product lines – aggregates, dry mortar and ground calcium carbonate – delivered solid performance.
These enabled the Company to record stable net sales of P6.64 billion despite softer cement demand. Gross revenue for the same period last year was slightly higher at P6.74 billion.
Holcim Philippines said that, with its steady topline and effective cost management, operating earnigs before income tax grew by 31percent year-on-year to P680 million.
“Alongside bolstering our cement business, we saw significant growth in our other offerings that highlight the value of diversification into other building materials,” said Holcim Philippines President and CEO Horia Adrian.
He added that, “We will further accelerate our transformation to lead the industry in innovative and sustainable building solutions.”
Meanwhile, Adrian said “We remain focused on strengthening cost discipline, sustainability, and innovation to raise business performance. Our successful carbon footprint reduction marked by the rebrand of our flagship product to Excel ECOPlanet is proof of our ability to deliver on this commitment.”
Amid continued energy costs pressures, Holcim Philippines realized further savings from its efficiency improvement and decarbonization initiatives.
The cornerstone of the efficiency program is linked to its Plants of Tomorrow initiative aimed at fostering data-driven decision making. As of the first quarter, the Company has deployed 94 digital projects across its operations.
Recycling remains an important lever of decarbonization by embedding more recycled materials into the Company’s cement products as well as increasing the amount of alternative fuels used in operations. From the beginning of the year, Holcim Philippines has recycled 290,000 tons of materials.
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The article was originally published in Manila Bulletin and written by James A. Loyola
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