Eagle Cement income rises to P3.3B in 9 mths

RAMON Ang-led Eagle Cement Corp. said on Friday that net in the year grew 10 percent to P3.3 billion on the back of higher sales volume despite tight competition.

Excluding expenses from its recent initial public offering (IPO), core net income increased by 10 percent, the company said.

Earnings before interest, tax, depreciation, and amortization ( Ebitda) and Ebit margins in the same period remained robust at 44 percent and 39 percent, respectively.

Net sales increased by 12 percent to P11.24 billion as the sales volume of bagged and bulk cement jumped more than 20 percent, partially offset by a decline in the average selling price of cement versus last year’s average.

“The industry-wide concern on to put pressure on prices. Nevertheless, Eagle’s advantage of having a new and state-of-the-art plant as well as its prudent cost structure, expectation,” Eagle Cement told the Philippine Stock Exchange.

“Also, with its third production line in Bulacan to be commissioned in 2018, Eagle is best poised to withstand the imports threat,” it added.

Cost of goods sold in the nine months went up by 19 percent, slower than the 23 percent increase in volume due to a lower cost effective cost management efforts, it said.

This led to a 5 percent increase margin rate of 48 percent.

Its balance sheet position remained stable with total assets standing at P41.12 billion, while the current ratio stood at 5.36 primarily due to the IPO proceeds for the company’s expansion.

Gearing levels remained manageable with a debt to equity ratio - uity of 0.31. Stockholders’ equity stood at P28.30 billion compared with P18.23 billion as of September 30, 2016.