Cement volume grows 7% in 2018

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Listed local cement producer Cemex Holdings Philippines, Inc. (CHP) on Friday said the volume of cement in 2018 rose by 7 percent on the back of robust demand from the public and private sectors.

Additionally, CHP said that it reached record volume in the third quarter, with sales revenues amounting to P23.4 billion in 2018.

The company’s performance slid during the fourth quarter in time with the landslide that occurred in Naga City, Cebu, which caused the producer to acquire raw materials from farther sources.

CHP said that they had to raise the cost of sales to 66 percent in the fourth quarter 2018 from 58 percent in the same period of the previous year.

This also caused the company’s operating earnings before interest, tax, depreciation and amortization (EBITDA) margin to go down during the last quarter to 7 percent from 12 percent, while full-year operating EBITDA was down to 12 percent from 15 percent.

From January to September 2018, CHP’s operating EBITDA margin was already at 14 percent, with the full-year decline attributed to the increase in cost of sales during the fourth quarter.

CHP said that the lower operating EBITDA, paired with higher financing and tax expenses, led to a net loss after tax of P325 million in Q4 2018. For full-year 2018, net loss stood at P930 million.

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