Eagle Cement Corp. registered a net income of P4.26 billion in 2017, up four percent from P4.11 billion in 2016 on higher sales and volume.
Excluding one off-expenses related to the initial public offering in 2017, net profit rose 5 percent to P4.33 billion in 2017.
The cement firm attributed the performance to higher sales volumes that boosted net sales to P14.87 billion, up 12 percent from a year ago.
“We have continued to beat our operational targets in terms of volume growth and cost efficiencies. Our efforts in upgrading and de-bottlenecking of our existing production lines allowed us to keep healthy margins despite the challenging market environment,” Eagle president and chief executive Paul Ang said.
Aside from increased competition among local cement producers which has pushed prices lower, domestic cement has to contend with cheap imports.
Despite the challenges, cement companies are still pushing through with their expansion plans on expectations of increased demand.
Eagle is expanding its cement capacity in line with the infrastructure push from both the public and private sectors.
Slated to start commercial operations this year is the third production line (Line 3) in Bulacan.
Line 3 will expand Eagle’s annual production capacity to 7.1 million metric tons, opening up to new markets in Region I, Mimaropa and Bicol in Southern Luzon, as well as reaching Western Visayas.
Eagle in November broke ground on its fourth production line (Line 4) in Malabuyoc, Cebu, marking the firm’s nationwide reach.
The project is on track to meet the target completion date in 2020, and will add another two million metric tons to Eagle’s annual production capacity.
Line 4 will include a manufacturing plant and a marine terminal to serve Negros islands, Cebu, Bohol, Masbate, Misamis Oriental, Davao, Zamboanga and South Cotabato.
