MANILA, Philippines – Robust sales and improvement in operating efficiencies allowed cement maker Holcim Philippines Inc. to breach the P4-billion income mark last year.
In a disclosure to the stock exchange, Holcim Philippines said its net income jumped 26 percent to a record P4.55 billion last year from P3.62 billion in 2012 on the back of strong demand and good cost management.
The cement manufacturer expects further demand growth this year even as it has postponed its plan to invest $550 million for a new factory in Bulacan pending studies on the synergy with other Holcim offices in Southeast Asia, a company official said.
“Our company benefited from the good business environment, which has allowed the construction boom to persist and cement demand to thrive,” said Holcim Philippines CEO Eduardo A. Sahagun.
Revenues rose six percent to P28.89 billion from P27.15 billion. The firm said its revenues improved last year, buoyed by good price management and steady volumes on the continued growth of cement demand.
“The market was made robust by the government’s heavy investments on infrastructure and the private sector’s commercial, residential and industrial projects,” Holcim Philippines said.
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In anticipation of continued demand growth this year, Sahagun said the company finished major projects in 2013 such as the capacity upgrades for its La Union and Misamis Oriental plants and the reactivation of its idle grinding facility in Batangas.
“Strong cement demand seen on continued construction, with the industry recognized as a key player in the country’s development,” Sahagun said, adding that cement demand will rise 5-8 percent this year.
However, the company has postponed its plan to invest $550 million for a cement factory in Bulacan. The facility, which will have an annual capacity of 2.5-million metric tons per year, was earlier expected to start operations in 2016.
Sahagun said Holcim Philippines was recently grouped with Southeast Asian countries Vietnam, Thailand and Indonesia in line with the region’s integration.
Hence, the regional leadership has started a study whether there is a need for a new production plant in the Philippines, Sahagun said. The Vietnam branch of Holcim has surplus production that can meet additional demand in the Philippines.
