Eagle Cement posts increase in net sales in 1H22

In the first half of 2022, Philippines-based Eagle Cement Corp saw its net sales advance to PHP13,680m (US$246m), compared to PHP11,057m in the same period a year earlier. EBITDA in the 1H22 came in at PHP4132m, marking a 13 per cent YoY decline. EBIT was down 16 per cent to PHP3501m over the same period, while net income contracted by 20 per cent to PHP2966m. The cost of goods sold in the 1H22 stood at PHP8856m, up 49 per cent from the PHP5934m seen in the 1H21, while operating expenses expanded by 35 per cent from PHP1073m to PHP1452m. Capex over the opening six months of 2022 was PHP771.09m, of which PHP703.65m was allocated to construction in progress.

“Our competitive advantages helped us to penetrate in the highly competitive market and partially cushion the continued escalation in input and operating costs,” said the company. “Despite margin compression, margins were maintained at a competitive level and wider than our peers’ average.” However, inflationary cost pressures more than offset the strong top-line performance, resulting in net profit decline during the period.