Holcim revenues up 30 percent in Q3
HCPHF | Quote | Chart | News | PowerRating -- Holcim Philippines has reported a 30-percent increase in revenues in the third quarter this year to P5.5 billion from P4.2 billion in the same period last year.
Industry demand grew at a monthly average of 18 percent. While this was primarily driven by the government?s vigorous infrastructure activities, the private sector also kept pace with numerous projects involving residential housing, tourism and business process outsourcing.
?The rainy season is historically a dry period for the cement industry,? said Holcim Philippines chief operating officer Ian Thackwray.
?But there was no such downtrend this year and, in fact, we experienced volume growth across all regions.?
Holcim?s revenues for the first nine months reached P17 billion, up 23 percent from last year's P13.7 million. Earnings before interest, taxes, depreciation and amortization increased 60 percent to P5.8 billion, from P3.6 billion last year.
Net income for the third quarter reached P855 million, almost nine times more than last year?s P97 million. This brings net income for the first nine months to P2.8 billion, more than double last year?s P1.3 billion.
With further improvements in next working capital, the company succeeded in generating P5.8 billion cash flow from operating activities.
Thackwray explained that while demand for cement grew across all regions, it was Mindanao that posted exceptional growth. Holcim enjoys strategic advantage in this region, having cement plants in Davao City and Lugait, Misamis Oriental.
Among the biggest government projects using Holcim products are the Laguindingan airport, Cagayan de Oro port, and major roads and bridges in Davao Oriental, Maguindanao and Agusan del Norte.
?Infrastructure is key to economic development and it is heartening to see that Mindanao is getting much-needed support in this area. We will continue to support government?s push to promote sustainable growth in Mindanao through efficient supply, availability and on-site delivery," said Thackwray.
The company expects that strong demand will continue until the end of the year.
?Where there is high demand, it is important to ensure superior product quality and reliable supply in all our markets and this will be our primary strategy moving forward,? he said.
Holcim Philippines has a workforce of 1,500 employees with strategically-located cement plants in La Union, Bulacan, Davao and Misamis Oriental.
These plants enable the company to ensure stable supply in all its markets, accounting for a clinker production capacity of 6.5 million metric tons and cement production capacity of 7.7 million metric tons per year.
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