28.6 C
Philippines
Wednesday, May 12, 2021

Holcim Philippines delivers excellent results in Q1 2021

  •  Commercial  excellence,  strong  cost  and  operational  discipline  led  to  excellent  EBIT and net income growth in Q1
  •   The Company is set to implement a COVID-19 vaccination program for its people

Horia Adrian, President and CEO of  Holcim Philippines, Inc. said: “We delivered an excellent performance  in  the  first  quarter  due  to  our  sustained  focus  on  Health,  Cost,  and  Cash. Commercial  excellence,  operational  efficiency  and  cost  discipline  were  key  drivers  to  our stronger  profitability.  Our  Company  is  committed  to  contributing  to  a  healthy  and  sustainable growth of the construction industry in the Philippines. We continue to stay focused on our cost, operational discipline and providing customers with innovative products and solutions. To further protect  our  people  and  business  we  are  implementing  a  voluntary  COVID-19  vaccination program by the third quarter. This will further bolster our resilience and help us sustain robust performance.”

FINANCIAL PERFORMANCE

Compared  with  2020,  the  Company’s  Earnings  before  Interest  and  Taxes  (EBIT)  for  the  first quarter  of  2021  rose  by  69%  to  Php  1.3  billion  due  to  sustained  cost  management  and operational  improvements.    Net  income  also  jumped  by  81%  to  Php  909  million.    As  the construction activity is recovering at a slower pace, revenues declined 6% year-on-year to Php

6.8 billion. Excellent EBIT results also translated to stronger cash generation, which more than doubled to Php 827.9 million in Q1 2021 from Php 409.1 million last year.

The  Company  is  well  prepared  to  address  the  challenges  ahead  by  focusing  on  strong operational, cost discipline and building on innovation and digital solutions to deliver sustainable business results.

KEY DEVELOPMENTS

Holcim Philippines is set to offer COVID-19 vaccines to employees and their dependents in the third quarter of 2021.

The  Company’s  adherence  to  high  standards  of  health  and  safety,  quality,  and  environment management  was  also  validated  by  certification  body  TUV  Rheinland.  In  March,  Holcim Philippines’ Bulacan Plant  earned an ISO 45001:2018 certificate for Occupational Health and Safety Management  System.  Moreover,  TUV  Rheinland  recertified  the Bulacan  Plant  for  ISO 9001:2015  (Quality  Management  System)  and  ISO  14001:2015  (Environmental  Management System).

On  the  commercial  side,  the  Company  recently  introduced  the  country’s  first  ever  water repellent  cement,  Holcim  Aqua  X.  The  latest  product  is  designed  to  protect  structures  from damage  and  deterioration  caused  by  excess  moisture.  This  follows  the  launch  of  Holcim Multifix, an easy-to-use and multipurpose mortar product to improve the quality of walls, floors, and tile installations in buildings.  These are part of  Holcim Philippines’ thrust to produce new building solutions to improve performance and help partners build better.

The Company also continues to advance in the digitalization of its business with a remarkable growth in transactions over customer portal Easybuild. Around 80% of all cement orders in Q1

2021 are now made through Easybuild. Payments over the platform have also ballooned more than three times from  the previous  year.  The stronger  utilization of  Easybuild  was driven  by enhancements to the platform that make it easier for customers to get updates, track orders, complete transactions, and share feedback with Holcim Philippines.

Finally, Holcim Philippines participated in government and private sector roundtable discussions on sustainability to raise awareness on its commitments and achievements on Climate Action and  Circular  Economy.  In  March,  the  Company  shared  its  contributions  to  addressing  the country’s plastic waste management challenge through co-processing operations in a webinar by  the  Department  of  Trade  and  Industry.  Holcim  Philippines  also  shared  co-processing’s potential   to   reduce   the   carbon   footprint   of   cement   manufacturers   in   a   Department   of

Environment and Natural Resources forum on climate change.

KEY FIGURES (IN THOUSANDS)

First Quarter                                          Jan-March 2021                     Jan-March 2020

Net Sales                                                Php  6,805,794                       Php 7,270,481

EBITDA                                                   Php  1,716,502                       Php 1,195,584

EBIT                                                      Php  1,274,133                         Php 755,977

Net Profit                                               Php  909,347                          Php 501,543

Cash from operating activities                 Php 827, 967                          Php 409,115

*For more information on our financial performance this quarter, you may check our page at the Philippines

Stock Exchange website or the section on disclosures on our Company’s website.

 

Latest News