Consunjis see profitability for Cemex in 2-3 years

MANILA, Philippines — The new leadership of Cemex Holdings Philippines (CHP) is looking at a couple more years before achieving a complete turnaround of the listed cement maker’s financial performance.

CHP president and CEO Herbert Consunji said that the company is seen becoming profitable in two to three years’ time.

“We cannot do it immediately since we’re coming from a net loss,” he said.

Consunji said the company is still seen incurring a net loss for 2025, but it should be smaller compared to last year.

He said the company’s priority this year is to “at least to go above water.”

“There are a lot of operational aspects that need to be fixed,” Consunji said.

“So little by little we are studying it. It cannot be overnight. We’re just two months in,” he said.

The Consunji Group, through diversified engineering conglomerate DMCI Holdings Inc., Semirara Mining and Power Corp. and Dacon Corp., completed its acquisition of Cemex Asian South East Corp. for $272 million last month.

The acquisition marks the group’s strategic expansion into the cement manufacturing sector.

The Consunji Group now has nearly 90 percent ownership in CHP, the country’s fourth-largest cement manufacturer.

DMCI holds a 51-percent stake, while Semirara and Dacon own 10 percent and approximately 29 percent, respectively.

To ensure a seamless transition, Consunji has been appointed as president and chief executive officer of CHP to lead the company’s turnaround efforts to further streamline operations and unlock synergies.

CHP incurred losses of P2 billion in 2023, primarily attributed to escalating costs and reduced sales volumes.

Recognizing CHP’s operational and financial issues, the Consunji Group last year expressed optimism of turning the company around by 2025.

“There are things to do. Before, we are outside looking in unlike now, we’re inside so we get to actually see it all,” Consunji said.

CHP, which wholly owns APO Cement Corp. and Solid Cement Corp., currently has a combined annual production capacity of 5.7 million tons.

The capacity is expected to grow to 7.2 million tons by early 2025 upon the completion of the expansion plant at Solid Cement.