Holcim profit dips to P1.6 billion last year

MANILA, Philippines — Holcim Philippines Inc. reported a net income of P1.6 billion last year, down from the P2.6 billion recorded a year ago.

While the company reported P26.6 billion in revenues last year, it also had to grapple with the extraordinary surge in fuel and energy costs, that ballooned by 60 percent from the previous year and accounted for 64 percent of production expenses.

However, in the fourth quarter, net income rose to P455.2 million, higher than the P264.8 million recorded a year ago.

The company booked P26.6 billion in revenues last year as it generated a premium from its differentiated offerings and strengthened its network of retail partners.

Horia Adrian, president and CEO of Holcim Philippines, said that in the face of extraordinary challenges, the company and and its people displayed tremendous resilience that enabled them to deliver positive financial performance and contribute to building progress in the country.

“Alongside a strong sales rebound in the second half and expansion of our customer base, we accelerated decarbonization of operations driven by higher usage of alternative fuels and raw materials and production of blended cements. These achievements were key to our resilient results and long-term success anchored on our transformation into the leader in innovative and sustainable building solutions in the Philippines,” he said.

Adrian said Holcim is positioned to grow its portfolio.

“With our growing portfolio of high-performance building solutions and retail partners and strong sustainability mindset, we are well positioned for the future. We are excited to continue growing the company to deliver value to our shareholders and support the country’s development,” Adrian said.

For its sustainability efforts, the company was able to reduce carbon emissions per ton of cement by seven percent from 2021 in line with its decarbonization drive, which also delivered savings of around P1.4 billion in production costs.

Another driver of decarbonization was the company’s use of alternative fuels and raw materials, which increased by 20 percent from 2021.

Holcim Philippines converted around a million tons of qualified wastes into alternative fuels and raw materials for cement production from industrial partners and 35 local governments nationwide, it said in a report to the Philippine Stock Exchange (PSE).

This also helped the company soften the impact of the surge in fuel and energy costs.

Holcim Philippines reduced freshwater withdrawals by 50 percent last year through improvements to its water recycling facilities to cool equipment, installation of rainwater harvesting structures, and digitalization of monitoring and control tools for greater efficiency.

The company has manufacturing facilities in La Union, Bulacan, Batangas, Misamis Oriental and Davao, as well as aggregates and dry mix business and technical support facilities for building solutions.