Holcim Philippines has reported an 8.7% y/y increase in net income in 1H14, at P3.32 billion. In the April – June quarter revenues were up 8.5% y/y to P8.81 billion. Total sales in the first half reached P16.86 billion; sales volumes hit 92 million bags, an 8.8% increase y/y. Operating profit for the first six months of the year reached P8.81 billion, up from P8.11 billion in 1H13.
Growth was driven by reconstruction efforts in the Visayas, government spending on infrastructure and the start of some Public-Private Partnership projects. Net income was slightly down in the second quarter compared to the first due to higher power costs. In the second half, the company said it will concentrate on completing regular maintenance of the cement plants on time and on budget. CEO Eduardo Sahagun said the company is on track for full year sales volume growth of 8%.
"On top of the sustained government and private sector spending, we now see some major Private-Public Partnership projects being implemented in the metropolis, hence our strong sales. We were able to meet this huge demand with our ability and commitment to keep the market supplied during this period of robust growth," said Sahagun.
Holcim and Lafarge recently announced their planned divestments ahead of their proposed merger. In the Philippines, the situation was a little less clear while the companies are ‘exploring the combination of their businesses’. At a media briefing, Sahagun told press that they estimate Lafarge’s market share to be 28% and Holcim’s to be around 34%, which brings their combined share to 62%. “That should be reduced,” he said.
Edited from various sources by Katherine Guenioui
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