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

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RAMON Ang-led Eagle Cement Corp. said on Friday that net income for the first nine months of 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 flooding of imports is continuing 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, help keep the profitability above 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 per bag, reflecting the company’s effective cost management efforts, it said.

This led to a 5 percent increase in gross profit to P5.37 billion in the first nine months at a gross 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 of 0.45 and financial debt to equity of 0.31. Stockholders’ equity stood at P28.30 billion compared with P18.23 billion as of September 30, 2016.

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