Holcim Philippines Inc. said net income fell 65 percent in 2017 to P2.4 billion from P6.9 billion in 2016 on weak demand and higher input cost.
Holcim said a disclosure to the stock exchange revenue decreased to P34.7 billion, down 13.9 percent in 2016 arising as a result of the combined effect of lower sales volume and price amid the tighter market competition.
The company said although there was a steady increase in public spending in the second half of 2017, the sluggish growth of the construction industry led to a decline in cement demand.
“Despite a challenging 2017, we pursued initiatives and continued investments that prepared us for the opportunities ahead in one of the best-performing economies in the region,” Holcim president and chief executive Sapna Sood said.
“The construction growth slowdown, tighter competition and increased input costs affected our financial performance in 2017. But we reacted swiftly to mitigate these challenges. We launched projects to strengthen customer focus, improve the efficiency of plant and logistics operations, manage costs, and offer more innovative building solutions. We expect these to improve our business performance and allow Holcim Philippines to have an even more positive impact on the country’s development,” she added.
Holcim in the third quarter of 2017 began a P3-billion expansion project that will raise its cement production capacity by two million metric tons in preparation for the projected rise in demand as government ramps up infrastructure spending across the country.
It engaged stakeholders in the road infrastructure sector, showcasing innovative building solutions that enable them to deliver projects faster and more efficiently.