Cemex losses hit P662 million in 6 months

MANILA, Philippines — Cemex Holdings Philippines Inc. (CHP) recorded a net loss of P662 million in the first half because of lower operating earnings due to the significant year-over-year increase in cost of sales and challenging market conditions.

Its consolidated net sales during the period declined to P9.1 billion, a decrease of 15 percent compared to the prior year due to lower volumes.

Operating EBITDA for the first six months amounted to P391 million, an 82-percent decline from a year ago.

Domestic cement volumes decreased by 17   for the first six months compared to last year’s level   due to subdued cement demand, a difficult prior year comparison, and heightened industry competition.

For the second quarter alone, net sales decreased by 18 percent year-on-year due to lower volumes and prices.

Luis Franco, president and CEO of CHP, said that for the second half , the company is cautiously optimistic due to decelerating inflation and the government’s continued rollout of its infrastructure programs.

“While we still have work in front of us, we are encouraged by the steady improvement in our cost base over the last two quarters. Even so, we expect to face challenging market conditions and cost pressures during the second half of 2023. In this year of transition for our company, we will continue to persevere and transform our company into a more resilient and more sustainable Cemex Holdings Philippines,” he said.

For 2023, CHP is guiding for a mid-single-digit to high-single-digit percentage decrease for its domestic cement sales volume.

CCHP produces and markets cement and other building materials in the Philippines through direct sales using its extensive marine and land distribution network.

Its brands include APO, Island and Rizal.

CHP is an indirect subsidiary of Cemex , S.A.B. de C.V., a global construction materials company that is building a better future through sustainable products and solutions.