Eagle Cement Corp. booked P6.015 billion in net earnings in 2019, 25 percent than in 2018 of only P4.798 billion as it reported continued rise in construction activities and cement consumption across development areas of the country during the year.
The listed cement firm’s profit growth was boosted by 20 percent higher net sales to P19.824 billion from P16.522 billion. It said the full-year effect of the income tax holiday from its third cement production line, which also saw full-year commercial operations last year, likewise improved its bottom line.
Earnings before interest, taxation, depreciation and amortization for the year rose 16 percent to P7.9 billion from P6.8 billion in 2018. Eagle Cement’s total assets in 2019 stood at P49 billion with debt-to-equity ratio at 0.31 times versus 0.39 times in 2018.
For the fourth quarter alone, Eagle Cement reported one percent lower profits, to P1.303 billion from P1.311 billion, while net sales rose five percent to P4.5 billion from P4.3 billion. The company said its sound cost structure allows it to gain healthy margins, with the aggressive expansion enabling it to compete with existing and new players in the industry.
The company is currently constructing its fifth mill in Bulacan that will add 1.5 million metric tons (MT) to its annual cement capacity of 8.6 million MT once completed in 2020.
It is also set to finish its fourth cement production line in December 2022, which will add 2 million MT to its yearly capacity. This follows the completion of its third cement line in Bulacan in 2018 that added 2 million MT to its annual capacity.
Eagle Cement said the Taal volcano’s steam-driven eruption in the early part of the year had minimal impact in the operations of its Calabarzon markets, and did not affect its warehouse in Batangas.
“More construction activity (is) foreseen for 2020-2021 for areas affected by the eruption,” Eagle Cement said in its analysts’ briefing presentation on 24 March.
The manufacturer also said it has implemented a business continuity plan in line with the enhanced community quarantine imposed in Luzon from 17 March to 12 April. Eagle Cement said it has also allocated funds to support its employees, community and partners.
It said it has sufficient inventories and manpower to support limited operations in order to address urgent requirements.