- Cement and aggregates prices continue to recover
- Operating Ebitda up 35%; slight increase of net profit due to higher interest expense from funding capital projects
John Stull, President and CEO of Holcim Philippines, Inc. (PSE: HLCM) said: “I am very pleased to share that we have successfully followed up our strong finish in 2018 with an excellent start of the year. This confirms the effectiveness of our plans to deliver profitable growth and sustainable returns.
“Our focus on raising profitability through tighter cost management, improved operational efficiency and commercial innovation continues to pay off as seen in our business results, and we are determined to build on these further. We will continue to execute with precision to deliver on shareholders’ expectations and become a stronger partner in the country’s progress.”
In Q1 2019, sustained public and private construction enabled Holcim Philippines to improve prices for its cement and aggregates offerings. The company also completed expansion project in its La Union plant, which included a tie-in of a new roller press to the finish mill that temporarily affected production volumes for North Luzon. As a result, Company’s revenues dipped by 5.8% year-on-year to Php 8.1 billion.
Operating Ebitda surged by 35% to PhP1.7 billion while EBITDA margins rose to 20.8% from 14.6% on a year-on-year basis due to operational efficiencies and lower costs in plants, optimized distribution and streamlined business operations. Net profit grew slightly to PhP704 million due to higher interest expense for funding capital projects.
In March, Holcim Philippines introduced Solido, a new high-performance blended cement to provide a better alternative to ordinary Portland cement for local builders undertaking major projects. Customers received Solido positively for its performance advantages and environmental benefits.
About Holcim Philippines.
Holcim Philippines, Inc. (Philippine Stock Exchange: HLCM) is one of the leading building solution companies in the country. The Company has a deep portfolio of innovative solutions fostered by a full range of products from structuring to finishing applications that can help local builders execute with high performance and efficiency a wide range of projects from massive infrastructure to simple home repairs.
With cement manufacturing facilities in La Union, Bulacan, Batangas, Misamis Oriental and Davao, as well as aggregates and dry mix business and technical support facilities for building solutions, Holcim Philippines is a reliable partner of builders in the country.
Holcim Philippines is also committed to the highest standards of sustainable operations and manufacturing excellence with its plants certified under ISO 14001:2004 (Environmental Management System), ISO 9001:2008 (Quality Management System) and OHSAS 18001:2007 (Occupational Health and Safety Management System).
Holcim Philippines is a member of the LafargeHolcim Group, the world leader in the building materials industry present in around 80 countries with around 75,000 employees.