The Consunji Group is now seeing a longer turnaround period for Cemex Holdings Philippines Inc. (CHP) which continues to be saddled by weak demand and competition from imports.
The Consunji family through Dacon Corp., DMCI Holdings Inc. and Semirara Mining and Power Corp. acquired a majority control of CHP for $272 million in 2024.
DMCI Holdings executive vice president and chief finance officer and CHP president and chief executive Herbert Consunji said it might take two to three years before the cement firm returns to profitability.
Consunji said the group is now exploring ways to improve the operations of the company and make it more efficient.
The group is also banking on CHP’s synergies to existing businesses which include construction, real estate, coal mining and power generation.
He expressed hope CHP’s net loss would be lower this year versus the previous years’ level.
The Consunji Group earlier said it expected CHP to turn round this year on the back of better market conditions and efficient operational synergies.
CHP widened its net loss to P2.87 billion in the first nine months of 2024 from a loss of P1.24 billion recorded in the same period last year.
The loss was mainly a result of reduced cement prices, higher financial expenses and higher income tax expenses.
CHP, which wholly owns APO Cement Corp. and Solid Cement Corp., has a combined annual production capacity of 5.7 million tons.
This is expected to grow to 7.2 million tons this year upon the completion of the expansion plant at Solid Cement Corp. in Rizal.
The domestic cement industry has been negatively affected by challenging market conditions resulting from intense industry competition, heightened by the presence of imported cement, soft demand and lower cement prices.
The share price CHP fell 1.12 percent Monday to close at P1.77.