Cemex Philippines absorbs losses as headwinds roil in H1

MANILA, Philippines — Losses continued for Cemex Holdings Philippines Inc. as inflationary headwinds in the first half left sales and demand reeling. 

In a disclosure sent to the Philippine Stock Exchange on Friday, CHP reported a net loss of P662 million in the first six months. The cement producer attributed the dismal performance to higher cost of sales and “challenging market conditions.” 

Consolidated net sales in the first half retreated 15% to P9.1 billion, while sales in the second quarter declined 18% on an annual basis due to lower volumes and prices.  

Domestic cement volumes plunged 17% year-on-year in the first half, due in part to anemic demand and tighter industry competition.

The cost of sales stood at 77.5% in the first half, owing to expensive fuel and power costs. 

Operating earnings before interest, taxes, depreciation, and amortization plunged 82% to P391 million in the first half. 

CHP indicated they were implementing an efficiency program in a bid to “counteract cost pressures” this year. 

“We are cautiously optimistic for the second half of the year, in light of decelerating inflation and the government’s continued roll-out of its infrastructure programs,” said Luis Franco, president and CEO of CHP.

“Even so, we expect to face challenging market conditions and cost pressures during the second half of 2023,” he added. 

Shares in CHP currently trade 1.83% down at P1.07 apiece as of 10:41 Friday morning.