Holcim earnings up 22% to P2.53B

MANILA, Philippines - Cement manufacturer Holcim Philippines Inc. grew its nine-month net profit by 22.2 percent to P2.53 billion as infrastructure spending as well as steady rollout of residential and commercial projects jacked up sales volume to record levels.

In a statement, Holcim said net sales reached P20.21 billion from January to September this year, up 22.5 percent or same pace as the industry growth despite monsoon rains that hit the country.

Sales volume expanded 20 percent to a record high 119.44 million bags of cement.

Gross profit rose 17.6 percent to P20.21 billion while income from operations increased 19.56 percent to P3.79 billion.

Given its strong performance, Holcim said it is looking forward to record sales this year as its plants achieve full efficiencies.

Holcim Philippines chief operating officer Roland van Wijnen said he is confident that the company will sustain its upward trajectory for the rest of the year and the coming year given the positive economic climate and the government’s accelerated infrastructure program.

“The challenge for us is to meet increasing demand over the longer term. We have begun reactivating our idle facilities, beginning with our terminal in Calaca, Batangas  last year. Our grinding plant in Mabini will be operational by the third quarter of next year,” Van Wijnen said.

Ed Sahagun, senior vice-president for commercial operations at Holcim Philippines said the firm is building a new plant, estimated to cost around $350 million to $450 million, that will produce around two million tons of cement per year.

The proposed plant, located in Batangas, will be submitted for board approval in the first half of 2013.

“We usually use the slowdown in the rainy season as time for maintenance and repair.  But, as demand exceeded expectations this year, we were confronted with the possibility of insufficient supply.  Given our commitment to ensure reliable supply, we chose to go for more expensive clinker imports,” Van Wijnen said.