Holcim Philippines (LafargeHolcim group) reported a lower net income of PHP6.8bn (US$134.8m) last year, compared to the PHP8.1bn recorded in 2015.
The 2015 profit included a one-time gain of PHP2.6bn from the revaluation of Holcim’s investment in an affiliate. Strong revenues and effective cost management efforts lifted the company’s earnings. With higher revenues and manufacturing and enhanced distribution network, the company’s EBITDA increased by 14 per cent to PHP10.8bn.
"Without the one-off item in 2015, profits were higher by 24 per cent in 2016 on effective management of manufacturing costs even as the company raised its cement production capacity," Holcim said.
Revenues rose 7.5 per cent to PHP40.3bn on on higher volumes and prices.Holcim posted higher sales last year despite increased competition, its chief operating officer Sapna Sood.
"Ensuring stable supply is critical in these times of high building activity. Last year, we demonstrated our commitment to keep the market supplied by raising our production capacity and leaning on our strong regional network. As a result, we showed our customers we are a reliable partner which helped us compete even with the entry of new players," Sood added.
"Aside from raising our production capacity, we are well positioned to introduce more value-adding construction solutions from the LafargeHolcim Group to help the country build better as it embarks on more sophisticated construction projects."
