Holcim Philippines delivers strong profit growth in 2021
Holcim Philippines full-year net income posts growth despite market and cost pressures. The Company is well-positioned to capture market opportunities through driving innovation on products and solutions. Holcim Philippines raises its positive impact to Net Zero with ongoing sustainability initiatives.
Horia Adrian, President and CEO of Holcim Philippines, Inc. said: “Despite market pressures brought by the pandemic, weather disturbances that impacted the continuity of construction activities, and surges in energy and fuel prices, our Company was able to deliver strong profit growth in 2021 from 2020. We are excited to further raise performance and deliver a more positive impact through strategies and initiatives anchored on cost mindfulness, operational excellence, innovation, and sustainability. These are the foundations that enable us to continue growing profitably and contributing to the country’s development with our innovative building solutions and sustainability programs.”
FINANCIAL PERFORMANCE
Holcim Philippines’ Earnings Before Interest and Taxes (Operating EBIT) grew by 29.3% year-on-year to Php 3.6 billion on the Company’s sustained focus on operational efficiency and cost management. Net Sales rose by 3.6% from the same period last year to Php 26.9 billion on improved volumes and prices given the modest recovery of construction activity. The Company’s Net Profit increased 24.2% to Php 2.6 billion.
In Q4 2021, the Company’s performance was affected by softer market demand and higher costs of energy and fuel-related to external developments. Operating EBIT and Net Sales for this period reached Php 481.3 million and Php 6.8 billion, respectively.
KEY DEVELOPMENTS
Holcim Philippines continues to remain resilient against COVID-19 with a successful campaign that led to almost 100% of its employees availing the vaccines offered by the Company or the government. The campaign continues with emphasis on the importance of booster shots, and ensuring health and safety protocols are strictly exercised across its business and operations.
The Company also drove innovation and sustainability initiatives to further improve business performance and make operations more respectful to the environment and beneficial to society.
Holcim Philippines ramped up product innovations with the launch of new building solutions for specific building applications including Holcim Aqua X, the country’s first-ever water-repellent cement that protects structures against excess moisture. In November, the Company launched Holcim ECOPlanet, its most environment-friendly product with more than 30% lower carbon
footprint than ordinary Portland cement and part of the global range of green cement developed by the Holcim Group. ECOPlanet is a general-purpose blended cement ideal for structural applications that delivers equal to superior construction performance while lowering the carbon footprint of buildings.
Aside from commercial innovations, Holcim Philippines also accelerated its digitalization initiatives to boost operational efficiency and performance. The Company is participating in the Holcim Group’s Plants of Tomorrow initiative and incorporating data analytics in logistics to make operations more efficient and further reduce its environmental footprint.
Other sustainability highlights include upgrades to its plants in La Union and Misamis Oriental and the completion of new facilities for Geocycle in Bulacan that reduce the Company’s consumption of natural resources and carbon footprint. The Company also signed an energy purchase agreement that will make Holcim Philippines the first cement manufacturer in the country to be solar-powered.
Finally, Holcim Philippines intensified its efforts to have a more positive social impact through its Holcim Helps campaign that benefitted 190,000 individuals. Significant support was channeled to affordable housing through a closer partnership with shelter organization Habitat for Humanity along with other efforts related to infrastructure and COVID-19 response.
