Eagle Cement Corp 1Q net profit slips 3%

Philippines-based Eagle Cement Corp reported a three per cent decrease in net income to PHP1.66bn (US$31.674m) in the first quarter of 2022 from PHP1.72bn in the equivalent period of 2021.

The company’s sales advanced 30 per cent from PHP5.3bn in the 1Q21 to PHP6.83bn in the 1Q22 as historically high quarterly sales volumes combined with higher average cement prices. In addition, its subsidiary Solid North Mineral Corp contributed extra revenue.

Gross profit was PHP2.59bn, up 11 per cent YoY from PHP2.34bn, with a gross profit margin of 38 per cent.

However, operating expenses increased 42 per cent, mainly as a result of higher freight costs due to sales volume growth as well as a spike in oil prices. Coal, power and diesel costs also advanced. An increase in warehousing expenses and higher advertising and promotion expenditure also contributed to rising operating costs.

Interest income declined by 26 per cent to PHP50.9m from PHP68.7m, due to the lower interest rates in the 1Q22 as compared to the 1Q21.
Finance costs slipped by 18 per cent to PHP78.5m, as a result of the partial repayment of loan related to the Term Loan Facility and Security Agreement (TLFSA).