H1 profit down 43% at P2.1B
CEMENT manufacturer Holcim Philippines said Wednesday it is allocating $54 million or P2.7 billion in the next two years to expand its cement production capacity to 12 million metric tons (MT) per year.
Holcim has an existing annual capacity of 10 million MT. It aims to add 2 million MT to this capacity starting first half of 2019.
“The company will invest $54 million in the next two years to add two million metric tons to its current cement capacity by the first half of 2019, particularly in La Union and Davao,” Holcim Philippines President and Chief Executive Officer Sapna Sood told the Philippine Stock Exchange.
“This investment continues the company’s successful debottlenecking of all sites in 2016 that already raised cement capacity to 10 million MT from 8.5 million,” she added.
The plan is in line with the company’s commitment “to the development of the country and to serving its customers better.”
Meanwhile, Holcim said its net income for the first half of the year was down 43 percent at P2.1 billion compared to the P3.7 billion recorded in the same period last year.
“The second quarter environment was softer compared to last year’s, where volumes were significantly higher due to pre-election infrastructure spending,” the company said.
First-half revenue dropped 16.7 percent to P17.4 billion from the P20.9 billion registered a year earlier, attributed to lower volumes and a dynamic price environment.
Earnings before interest, taxes, depreciation, and amortization (Ebitda) for the first half fell 27.4 percent year-on-year to P3.7 billion on lower sales as well as higher production input costs.
“The company has implemented various company-wide initiatives to further improve operational efficiency,” it said.
Aside from raising its production capacity, Holcim Philippines is introducing more innovative building solutions and services to help the country build faster, cost effectively and sustainably.
Holcim Philippines said it is now implementing 24-hour delivery to key customers in Luzon, with those in the rest of the country to follow within the year, for immediate product availability for new homes, farm-to-market roads, new highways and essential infrastructure.
Holcim is one of the leading cement manufacturers in the Philippines.