Cemex posts turnaround, earns ₱1.28 B in 2019 » Manila Bulletin Business

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Cemex posts turnaround, earns ₱1.28 B in 2019

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By JAMES A. LOYOLA

Cemex Holdings Philippines Inc. (CHP) reported a sharp turnaround with a consolidated net income of ₱1.28 billion last year from a net loss of ₱971 million in 2018 due to higher prices and foreign exchange gains.

In a disclosure to the Philippine Stock Exchange, the firm said sales increased by 1 percent to ₱23.6 billion in 2019 versus the ₱23.42 billion in 2018 as cement prices increased by 4 percent due to adjustments implemented in 2018.

However, for the fourth quarter, net sales decreased by 3 percent to ₱5.37 billion from ₱5.51 billion year-over-year due to lower volumes, as adverse weather conditions in the month of December affected Luzon and Visayas.

Cost of sales, as a percentage of sales, decreased by 2 percentage points to 59 percent in 2019 compared with from 61 percent in 2018.

Operating expenses, as a percentage of sales, were lower by 2 percentage points to 18 percent in 2019 from 20 percent in 2018. The decrease was due to lower distribution expenses resulting from supply- chain-optimization initiatives.

For the full year 2019, CHP posted an operating EBITDA of ₱4.23 billion from ₱781 million in 2018.

CHP also reported foreign exchange gains of ₱453 million last year compared to losses of ₱381 million in 2018. Income taxes also fell 77 percent to ₱219 million from ₱954 million.

“I am pleased with what we accomplished in 2019, as these were a result of our efforts to maintain efficiencies, optimize costs, and improve our customers’ experience,” CHP President and Chief Executive Ignacio Mijares.

The company’s Stock Rights Offering (SRO) of 8.29 billion common shares of CHP set at the price of ₱1.54 per share was successfully completed with the offer period ending last January 24, 2020.

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