By James A. Loyola
Building solutions provider Holcim Philippines, Inc. reported that its net income for the first nine months of 2017 dropped 57 percent to P2.3 billion from P5.4 billion in the same period last year as competition remains to be stiff.
In a disclosure to the Philippine Stock Exchange, the firm said From January to September, Holcim Philippines’s operating sales revenues from July to September slipped to P8.3 billion from P10.1 billion in the same period last year as the market challenges impacted volumes and prices.
The local cement industry has been suffering from importation, as well as the smuggling, of cheaper cement from overseas.
Given the sustained adverse business conditions, Holcim Philippines’s revenues from January to September declined to P25.7 billion from P31.0 billion in the same period in 2016.
Holcim Philippines also experienced cost pressures from rising energy expenses and the declining peso. As a result, the company’s third quarter net income fell to P337.2 million from P1.8 billion in the previous year.
While tighter competition and higher production expenses challenged the performance of Holcim Philippines in the third quarter, the company said it continues to sustain its investment and expansion plans in the country, believing in the growth ahead.
“We remain steadfast in our support for Philippine growth and in the many opportunities in the market. We note the government’s recent report that infrastructure spending has started to pick up,” said Holcim Philippines President and CEO Sapna Sood.
She noted that, “to this end, the transformation of our company continues in order to better serve our customers and support the development of the country.”