CEMEX Holdings Philippines Inc. reported a pro-forma consolidated net income of P1.88 billion in January to September on the back of higher sales, better prices, volumes and cost efficiencies.
The firm was incorporated only in September 2015 for the purpose of listing on the stock exchange in July. It has no comparative bottom line for the year earlier, as the group reorganized and consolidated its subsidiaries only last January.
Pro forma net sales reached P19.8 billion in the first nine months of the year, which was 7 percent higher than the P18.54 billion recorded in the same comparable period.
In the third quarter alone, pro forma consolidated profit stood at P983.19 million. Net sales increased by 4 percent at P6.6 billion from P6.3 billion a year earlier.
“I am very pleased with our operating results. We have managed to grow and improve in many respects, such as increasing volumes and prices in a highly competitive environment and achieving cost efficiencies,” said Pedro Jose Palomino, Cemex president and chief executive officer.
Volume sales also grew by 4 percent in January to September, and would have grown more if not for a 3-percent decline in domestic gray cement volumes in the third quarter due to lower infrastructure activity because “of adverse weather conditions and increased cement imports into the country.”
Prices of domestic gray cement prices slightly increased by 2 percent in the first nine months, and 1 percent in the third quarter.
Cemex said it was able to improve its financial results by settling a $504-million short-term loan and reducing its long-term debt by 15 percent or $56 million to $318 million due to stronger cash flow.
Cemex has earmarked P2.175 billion in capital expenditure this year, to cover budget expansion (P1.54 billion) and maintenance costs (P630 million).
The company is banking on bright prospects in the infrastructure, housing and construction sector during the six years of the Duterte administration as the “Golden Age of Infrastructure.”
Cemex is a leading cement manufacturer in the Philippines. It is an indirect subsidiary of CEMEX S.A.B. de C.V., which is listed on the Mexican Stock Exchange and the New York Stock Exchange.