Taguig—(PHStocks)—Strong demand in the second quarter from sustained public and private building activity lifted the financial performance of construction solution firm Holcim Philippines Inc. (PSE: HLCM). Holcim Philippines’s revenues in Q2 2016 rose 14.4% to Php 10.7 billion from Php 9.4 billion in the same period last year due to increased demand from the growing construction industry.
Holcim Philippines’s operating EBITDA improved by 33.3% in the second quarter to Php3.3 billion, while its net income rose by 41.8% year-on-year to Php 2.2 billion. For the first half, Holcim Philippines revenues reached Php 20.8 billion, a 15.7% increase from the previous year’s Php 17.9 billion. Operating EBITDA was Php 5.7 billion, while net income was Php 3.7 billion, higher by 19.6% and 21.1%, respectively, from the same period last year.
Holcim Philippines President and Country CEO Eduardo Sahagun said that the company’s performance was mainly due to the strong market demand and to various operating efficiency programs that the company started early in the year. These have begun yielding results in the second quarter.
He, however, added that the next quarter could be challenging due to the effects of seasonality on demand and logistics operations, and the power supply concerns in Mindanao. Overall, Sahagun is optimistic about Holcim Philippines’s business prospects.
“The new administration’s vow to further increase infrastructure investments to 7% of GDP bodes well for the entire country. Holcim Philippines stands ready to support the country’s sustained development by working to keep the market supplied through the timely completion of our project increasing cement capacity to 10 million tons and through the introduction of more innovative construction solutions to help the sector build faster and better,” he added.