The net sales of Holcim Philippines declined by 22% to P26 billion as volume and prices dropped due to the impact of the pandemic.
Net profit fell 34.44% to P1.036 billion in the fourth quarter of 2020 as net sales dropped to P7.235 billion from P9.808 billion during the same period the previous year.
Full-year net profit dropped by 42.49% to P2.064 billion from P3.589 billion in 2019 as net sales declined to P26.015 billion from P33.486 billion the previous year.
According to John Stull, President and CEO of Holcim Philippines, Inc., lockdowns from March to May and severe weather conditions in the fourth quarter further affected the business.
These hampered delivery of raw materials and services to production sites and dispatch of products to customers.
Holcim Philippines posted Operating Earnings before Income Tax (EBIT) of P2.8 billion which was 44% lower than the 2019 Operating EBIT of P4.9 billion.
Holcim Philippines is expected to sustain its gains from cost management and efficiency improvements beyond 2020.
The company kept operations free from Covid19 in 2020 due to immediate actions in line with government guidelines and LafargeHolcim Group’s best practices. These enabled the Company to prevent any health-related disruptions and to provide reliable supply to customers after the lockdowns were eased nationwide.
Product innovations also continued with the launch of Holcim Multifix, a new easy-to-use and multipurpose mortar product to improve the quality of walls, floors, and tile installations in buildings.
The Company is also set to invest P121.5 million until 2022 to improve usage of alternative fuels and raw materials for cement production at its Bulacan plant.