MANILA, Philippines - The ongoing construction boom continued to deliver hefty returns for cement manufacturer Holcim Philippines Inc. in the second quarter.
In a regulatory filing, Holcim Philippines said its net income jumped 34 percent to P1.62 billion while revenues grew 13 percent to P8.11 billion from April to June this year.
“The growth in the second quarter surprising because it is traditionally the strongest quarter,†Holcim Philippines CEO Eduardo Sahagun said in a briefing.
“But the growth was better than what we expected,†he added.
Holcim Philippines said it benefited from robust construction nationwide due to favorable weather conditions, early release of government funds for infrastructure and election spending.
“Our industry is a key sector that is benefiting early from the Philippines’ economic revival,†Sahagun said.
For the first half, Holcim Philippines’ said it net income surged 50 percent to P3 billion while revenues expanded 10.5 percent to P15.28 billion.
Moving forward, Holcim Philippines said it expects demand to continue picking up, prompting the company to pursue expansion projects.
Holcim Philippines spent $12 million to reactivate its cement plant in Mabini, Batangas which will produce one million metric tons (MT) of cement per year starting next month.
“We see a continuing trend in construction activities; government is keen on sustaining infrastructure investments and private construction is being driven by real demand,†Sahagun said.
“In such an environment, the challenge is keeping the market supplied and we are committed to do our share,†he added.
It is also finalizing its plans for a $550-million cement factory in Bulacan that will start its 2.5-million MT per year production in 2016.
Holcim Philippines produces four cement products: Holcim Excel, Holcim WallRight, Holcim Premium Bulk and Holcim 4X that are sold in bags, tonner bags and in bulk.
Its parent firm, Switzerland-based global cement giant Holcim Ltd., is one of the world’s leading suppliers of cement and aggregates (crushed stone, gravel and sand) as well as downstream activities such as ready-mix concrete and asphalt. The group holds majority and minority interests in more than 70 countries on all continents.