Holcim Philippines reports ‘record’ year

Holcim Philippines has told press that net profit grew 26% in 2013 to P4.55 billion, thanks to a ‘good business environment, which has allowed the construction boom to persist and cement demand to thrive’. Holcim Philippines’ CEO Eduardo Sahagun also said that credit should go to the staff for their contribution to this record performance.

Revenues grew 6% y/y to P28.9 billion, which is a company record. The success has been attributed to demand growth, price management and cost-efficiency measures. Demand grew 6% across the industry last year, but Holcim reports flat volumes due to maintenance and upgrade activities and the slowdown in 4Q in the aftermath of the terrible typhoon that hit the country in November. An upgrade project took place at the La Union and Misamis Oriental cement plants last year and the Batangas grinding plant was reactivated. Demand outstripped supply last year and Holcim has to resort to importing clinker. In the year ahead, 5 – 8% growth is expected for the cement industry and Holcim is anticipating similar growth.

Expansion plans on hold

Plans for a huge investment in the 2.5 million t brownfield plant in Norzagaray are reportedly on hold during a reorganisation of the parent company’s regional operation. Mr Sahagun reportedly said that the new regional head will need time to study the project in light of the regional integration that may make it easier to import cement from Holcim Vietnam, which has excess capacity. “For Holcim, we plan as a region,” Mr Sahagun is quoted as saying. “We don’t plan as a country and we believe that’s the right thing to do because the region is consolidated. You look at ASEAN as an integrated market.”

Edited from various sources by Katherine Guenioui

Read the article online at: https://www.worldcement.com/asia-pacific-rim/20022014/holcim_philippines_reports_record_year_782/