Cement manufacturer Holcim Philippines Inc. reported a 42-percent increase in second-quarter net income to P2.2 billion amid strong demand from the upbeat construction activities from both the public and private sectors.
Holcim Philippines president and country chief executive officer Eduardo Sahagun said revenues in the second quarter of 2016 rose 14 percent to P10.7 billion from P9.4 billion year-on-year on strong volume growth.
Sahagun also credited the company’s strong second-quarter performance to operating efficiency programs that the company started early in the year.
The company raised prices by an average of 2.2 percent in the second quarter of 2016.
Sahagun is optimistic about Holcim Philippines’s business prospects for the remainder of the year.
“The new administration’s vow to further increase infrastructure investments to 7 percent of GDP [gross domestic product] bodes well for the entire country,” Sahagun said.
“Holcim Philippines stands ready to support the country’s sustained development by working to keep the market supplied through the timely completion of our project increasing cement capacity to 10 million tons and through the introduction of more innovative construction solutions…,” he said.
Aside from increasing spending, the Duterte administration also plans to continue projects under the public-private partnership scheme to speed up infrastructure development.
Sahagun said the next quarter could be challenging due to the effects of seasonality on demand and logistics operations, and the power supply concerns in Mindanao.
To meet increasing demand, the company has been expanding capacities of existing cement plants in La Union, Bulacan, Misamis Oriental and Davao.
The strong second quarter performance boosted Holcim Philippines’ first-half net income to P3.7 billion, up 20 percent. First-half revenues jumped 16 percent to P20.8 billion.
The cement company said the cost of goods sold remained at the same pace despite higher consumption of imported clinker.
Share price of Holcim Philippines on Thursday rose 1.5 percent to P15.88, bucking the market decline.