Eagle Cement Posts 30% Income Growth in 1Q
Mandaluyong—(PHStocks)—Eagle Cement Corp. (PSE: EAGLE) maintains its strong financials as the publicly listed cement firm posted PhP1.03 billion in profit for the first quarter of 2017, or a 30% increase year on year.
Net sales also increased by 19% from PhP3.17 billion in first quarter 2016 to PhP3.77 billion this year. The company attributes its positive first quarter results to sales driven by increased sales volume.
The declined spending on infrastructure in the first quarter, in contrast to last year’s accelerated spending prior the May elections, did not affect the company, which continued to generate profit through its solid distribution network.
Eagle added that its retail business remains strong and with the government’s pronouncement of increased infrastructure spending under its PhP8-trillion “Build Build Build” plan, the firm is optimistic about its prospects.
While it continues to keep its stronghold in the market, Eagle is also completing its third integrated cement production line in Bulacan, which is expected to be operational by 2018. It will add 2 million metric tons to Eagle’s capacity. The company is also set to begin construction of its fourth integrated cement production line in Cebu and its supporting facilities in Visayas and Mindanao in a bid to penetrate the cement market in the region.
Eagle also discloses that it is actively seeking further expansion as local demand for cement constantly increases.
Government push via tax incentive
In relation to the need for more cement output, BOI’s inclusion of cement projects in the new Investment Priorities Plan (IPP) for tax incentive purposes is a move also welcomed by EAGLE. Mr. Paul Ang, President and Chief Executive Officer of Eagle, affirms that this effort by the government reinforces its commitment to push for growth through infrastructure. “It’s a strategic move to encourage cement firms to expand, especially with a looming 47 million metric ton demand by 2025.”
With Eagle’s increase in capacity through the addition of two integrated cement plants from its third line in Bulacan and in Cebu, it has demonstrated a lead in the local cement industry that will support the growing demand in the country.
About Eagle Cement
Founded in 1995 and commenced commercial operations in 2010, Eagle Cement Corporation (EAGLE) is engaged in the business of manufacturing, marketing, sale and distribution of cement, using the brands Eagle Cement Advance Type 1P, Eagle Cement Exceed Type 1P, and Eagle Cement Strongcem Type 1. EAGLE is an ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007 certified company.
