NEWLY-listed cement manufacturer Eagle Cement Corp. said on Friday its net income for the first quarter of 2017 rose 30 percent from a year ago to more than P1 billion driven by increased sales volume.
Net income rose to P1.03 billion compared to the P793.9 million recorded in the same period last year.
“Gross profit increased by 15 percent. So it grew but albeit at a slower pace than net sales as cost of goods sold increased by 23 percent compared to the same period last year,” Eagle Cement Chief Financing Officer Monica Ang told a news conference in Mandaluyong City.
Earnings before interest, tax, depreciation and amortization (Ebitda) rose 29 percent to P1.6 billion from the P1.25 billion recorded in the first quarter of 2016.
“The decline [in]spending on infrastructure in the first quarter, in contrast to last year’s accelerated spending prior to the May elections, did not affect the company, which continued to generate profit through its solid distribution network,” Eagle said.
The company added that its retail business remains strong and it is optimistic about its prospects given the government’s pronounced thrust on infrastructure under the “Build, Build, Build” program, under which the government is looking to spend up to P8 trillion.
The Build, Build, Build program is envisioned to uplift the lives of Filipinos as more jobs will be created.
Eagle is also currently completing its third integrated cement production line in Bulacan, which is expected to be operational by 2018. Once functional, this would add up to 2 million metric tons to Eagle’s capacity.
The company is also set to begin construction of its fourth integrated cement production line in Cebu and its supporting facilities in Visayas and Mindanao in a bid to penetrate the cement market in that region.|
Eagle further said it is actively seeking further expansion as local demand for cement constantly increases.
“We remain optimistic with [our]business key strategies and we intend to enter new markets this year,” Ang said, without providing further details.
The company reiterated that it is committed and is looking forward to further support the government’s infrastructure program.
Established in 1995, Eagle is engaged in the business of manufacturing, marketing, sale and distribution of cement, using the brands Eagle Cement Advance Type 1P, Eagle Cement Exceed Type 1P, and Eagle Cement Strongcem Type 1.