Cemex Holdings Philippines Inc. posted a net income of P1.28 billion in 2019, a reversal from a loss of P971 million in 2018, on higher operating income and foreign exchange gains.
CHP said in a disclosure to the stock exchange 2019 sales inched up one percent to P23.6 billion from 2018 as domestic cement volumes decreased three percent due to a slowdown in construction activity related to the delay in the approval of the national budget and the mid-term elections held last May.
“I am pleased with what we accomplished in 2019, as these were a result of our efforts to maintain efficiencies, optimize costs, and improve our customers’ experience,” CHP president and chief executive Ignacio Mijares said.
The company plans to invest P7.4 billion in 2020 mainly to fund the expansion of the Solid cement plant and maintenance capex.
Funding for this year’s capital spending will come from the proceeds from the company’s recently concluded P12.77-0billion stock rights offering.
CHP is expanding Solid cement’s plant with the construction of a new cement line capable of producing 1.5 million metric tons annually.
The $235-million expansion plant is expected to be completed by the second quarter of 2021.
CHP, meanwhile, said the net income in the fourth quarter of 2019 reached P405 million, also a turnaround from a loss of P307 million year-on-year.
Net sales in the fourth quarter decreased three percent on year due to lower volumes, as adverse weather conditions in December affected Luzon and Visayas.
Cost of sales as a percentage of sales also fell two percentage points in 2019, while operating expenses as a percentage of sales were lower by 2 percentage points on year.
CHP expects total cement volumes to increase by three to seven percent this year.
CHP is an indirect subsidiary of CEMEX, S.A.B. de C.V., one of the largest cement companies in the world based on annual installed cement production capacity.