Holcim Philippines Inc. (HPI) and Cemex Holdings Philippines Corp. (CEMEX) registered healthy profits in the second quarter of the year on improved overall business environment.
HPI said in a disclosure to the stock exchange over the weekend second-quarter net income reached P721.4 million, a reversal from a loss of P87.7 million year-on-year when the government imposed a strict lockdown to curb the spread of the coronavirus.
The second-quarter income pushed first-half profits to P1.63 billion, up 294 percent from P413.8 million a year ago.
Second-quarter net sales surged 65 percent to P6.9 billion as demand and prices recovered with the rebound in construction activity.
“Winning with purpose and helping build progress in the Philippines perfectly capture our performance in the second quarter. Aside from delivering outstanding results, we also helped our partners build greener, smarter, and for all,” Holcim Philippines president and chief executive Horia Adrian said.
“We continue our efforts to use recycled materials in our plants, having consumed more than 208,000 tons of wastes as alternative fuels and raw materials,” he added.
Meanwhile, CEMEX recorded a net income of P598 million in the second quarter of the year, up 1,203 percent from P46 million a year ago.
The income pushed first-half profits higher by 495 percent to P804 million from P135 million in the same period in 2020 due to higher operating earnings.
Sales increased 43 percent year-over-year in the second quarter to P5.7 billion on higher volumes, resulting from low base effect following a strict government lockdown last year.
Cement companies expect their performance to be affected by the rainy season, competitive market dynamics, and inflationary cost pressures and continued threat from the pandemic.
“Despite the positive developments we have seen during the first six months, we recognize that there will be headwinds during the second half of the year. I am confident in our ability to face these challenges through the commitment, teamwork, and proven resilience of our employees,” CEMEX president and chief executive Ignacio Mijares said.
CEMEX announced that the completion of a new production line will be moved to June 2022 because of general delays.