Cemex Philippines sees net sales fall 10%

Cemex Holdings Philippines Inc announced that net sales decreased by 10 per cent during the 1Q20, versus the 1Q19, amounting to PHP5.6bn (US$110.7m). Domestic cement volumes decreased by four per cent versus 1Q19.

An eight per cent increase in volumes during the first two months of the year was offset by the effects of the Enhanced Community Quarantine in Luzon and other quarantine measures around the country during the second half of March 2020. CHP’s domestic cement prices fell by six per cent during the quarter compared with the same period in the previous year, reflecting price declines during the 2H19.

Operating EBITDA in the first quarter was at PHP1.08bn, a decrease of one per cent versus the same period in 2019. Operating EBITDA margin increased to 19.2 per cent during the quarter, up by 1.7 percentage points YoY. The comparable cost base in the 1Q19 was affected by the scheduled kiln maintenance of Solid Cement plant, higher sales from cement imports, and consumption of purchased clinker for cement production, as a result of the Naga landslide.

Net income was at PHP89m in the 1Q20 versus PHP168.6m in the 1Q19, mainly due to lower operating earnings mostly as a result of COVID-19 community quarantine measures. As of 31March 2020, CHP’s total debt was at PHP13,481m, a decrease of around PHP6.6bn from 31 December 2019.

Ignacio Mijares, CHP president and CEO, said: “Our focus during these challenging times is on three priorities: first, to protect the health and safety of our employees and their families, customers, suppliers, and communities; second, to support our customers as much as possible in a responsible way; and third, to ensure the long-term business continuity of CHP.”