Holcim posts 64% profit hike to P1.97 billion in first half

MANILA, Philippines - Holcim Philippines Inc. reported a 64.2-percent jump in net income during the first six months of the year as sustained public and private construction activities fueled strong demand for cement despite the global financial downturn.

Based on financial statements it submitted to securities regulators, Holcim said net earnings rose to P1.97 billion from P1.2 billion a year earlier on the back of a 20.15 percent surge in net sales from P9.53 billion to P11.45 billion.

 “It was a semester of exceptional performance and, with the government’s strong focus on infrastructure, coupled with continuing demand for housing, we hope to sustain this for the balance year,” said Ian Thackwray, chief operating officer of Holcim.

Gross profit climbed 26.3 percent to P2.52 billion while income from operations improved 42.2 percent to P3.1 billion.

With costs and expenses remaining stable and the company keeping its tight rein on expenditures, earnings before depreciation, amortization, interest and taxes (EBITDA) expanded by 33 percent to P2.2 billion.

In the second quarter alone, Holcim posted a net profit of P1.17 billion, up 57.6 from P742.38 million the same period a year ago. Net sales reached a record P5.96 billion or an increase of 14.4 percent from the year earlier level.

Thackwray said infrastructure projects and low-cost residential housing were the major growth drivers during the first semester.

“While North Luzon still accounted for the biggest volumes, and demand increased across all regions, it was Mindanao where growth was exceptional. This was largely due to infrastructure projects funded by the government’s stimulus package. Robust housing construction activity was also sustained, following strong OFW remittances and declining interest rates,” he said.