Holcim profit declines 34% to P700 M in Q1

Holcim Philippines reported a first quarter net income of P700 million, 34 percent lower than the same period a year ago.

Revenues declined 2.7 percent to P8.6 billion due to the impact imports had on pricing.

Holcim Philippines president and chief executive officer John Stull said demand conditions are improving as the government continues to ramp up infrastructure investments.

“However, its positive impact on our financial performance was not enough to offset higher energy costs and weaker cement prices brought by intense competition,” he said.

Stull, however, remains optimistic about the construction industry’s prospects given the government’s commitment to the Build Build Build program.

“Our company is well positioned to support this by providing reliable cement supply and rolling out innovative building solutions. At the same time, we will continue to improve and strengthen our cost management efforts centered on raising the efficiency of plant and logistics operations,” Stull said.

In terms of cement sales, the company reported that volumes rose seven percent due to increased construction activity nationwide.

Meanwhile, the company has started to pilot its new building solutions for infrastructure in Mindanao. The region is set to receive the biggest share of the government’s infrastructure budget this year.

Holcim Philippines has cement manufacturing facilities in La Union, Bulacan, Misamis Oriental, and Davao, as well as aggregates and dry mix business and technical support facilities for building solutions.

The company is a member of the LafargeHolcim Group, the world leader in the building materials industry and is present in around 80 countries with approximately 80,000 employees.