Eagle Cement net profit down 61% in 1st half

MANILA, Philippines — Eagle Cement Corp., the listed cement company owned by the Ang family, continued to make profits in the first half of the year – although lower than year-ago figures – even as the economy fell into a recession.

Eagle posted a net profit of P1.3 billion, down 61 percent as net sales dropped 44 percent to P5.9 billion.

In the second quarter alone, Eagle reported a net profit of P128 million, down from P1.7 billion as net sales dropped 73 percent to P1.4 billion.

Eagle president and CEO Paul Ang said the company is expected to resume its strong performance once the restrictions ease, along with resumption of infrastructure projects.

“These are very difficult times, but we remain confident that the economy will recover from this pandemic and emerge stronger. The government’s steady push for the completion of major infrastructure projects and the private sector’s readiness to bounce back offer encouraging signs for our company’s prospects moving forward,” Ang said.

The cement industry has become even more competitive as players try to squeeze in profits amid the difficult business environment.

To cope with the more competitive environment moving forward, Ang said the company would have to employ more aggressive strategies.

“More aggressive strategies in pricing and marketing will be undertaken in the remaining half of the year,” Ang said.

Despite the slide in profitability, Eagle’s financial position remained strong at the end of June to withstand any external adversities amid the crisis.

Total assets amounted to P45.8 billion, albeit with a seven percent drop from the end-2019 figure while total liabilities declined 13 percent to P10.2 billion.

“Our balance sheet remains strong and well-capitalized and the company is well-positioned to take advantage of a rebound in the construction industry. We continue to expand our production capacity despite the pandemic, underscoring our confidence on the economy’s ability to recover once quarantine restrictions are further eased,” said Ang.

The cement firm, chaired by tycoon Ramon Ang, is also on track with its expansion plans despite the pandemic.

The company is expanding its plant in Bulacan, slated to be completed in the first quarter of next year, to augment its current cement production capacity by 1.5 million metric tons (MMT) to 8.6 MMT a year.