Eagle Cement Corp., the cement company owned by tycoon Ramon Ang, reported a 13-percent increase in net income to P4.8 billion in 2018 on double digit growth of sales and volume.
Eagle Cement said in a disclosure to the stock exchange net sales reached P16.5 billion in 2018, up 11 percent from P14.9 billion it posted in 2017. Gross profit inched up by four percent to P7.2 billion.
“While we are faced with challenges in the industry, we remain steadfast to expand the company to meet the increasing local demand for cement, driven by the thriving property sector, growth in consumption, as well as the anticipated rollout of government’s infrastructure projects,” Eagle president and chief executive Paul Ang said.
The cement company registered record net sales of P4.3 billion in the fourth quarter of 2018, up 19 percent year-on-year. Net income also jumped 36 percent to P1.3 billion from P964.8 million in the fourth quarter in 2017.
“We expect the momentum to continue, as Eagle sets the stage for the next cycle of growth for the company. We seek to continue to invest in expanding our market reach to become a nationwide player,” Ang said.
The company’s financial position at the end of 2018 remains optimal and well-capitalized, with total assets increasing seven percent to P45.5 billion.
Total liabilities fell three percent to P12.6 billion while stockholder’s equity rose 12 percent to P32.8 billion.
Eagle Cement is currently expanding its Bulacan plant with an additional grinding capacity of 1.5 million metric tons, bringing its total annual cement output to 8.6 million metric tons by 2020.
Share price of Eagle Cement on Wednesday gained 0.6 percent to P15.92.
Eagle Cement is reportedly interested in acquiring the assets of Holcim Philippines Inc.
LafargeHolcim Ltd., Europe’s biggest cement maker, plans to sell its Philippine business and other non-core assets as it seeks to further reduce financial obligations.