CEMENT firm Holcim Philippines Inc. said its attributable income slid 63 percent last year to P941.77 million from 2021’s P2.56 billion on softer demand in the first half of 2022.
Revenues for the year were down by 1 percent to P26.58 billion from last year’s P26.94 billion.
The company said it gained momentum in the second half with revenues increasing 9 percent year-on-year to P14.4 billion as sales steadily grew in the third and fourth quarters.
The company said it was able to increase prices and reduce fixed costs by 11 percent, but these were not enough to offset the extraordinary surge in fuel and energy costs, which ballooned by 60 percent from the previous year and accounts for 64 percent of production expenses.
“In the face of extraordinary challenges, our company and people displayed tremendous resilience that enabled us to deliver positive financial performance and contribute to building progress in the country,” Horia Adrian, the company’s president and CEO, said.
“Alongside a strong sales rebound in the second half and expansion of our customer base, we accelerated decarbonization of operations driven by higher usage of alternative fuels and raw materials and production of blended cements. These achievements were key to our resilient results and long-term success anchored on our transformation into the leader in innovative and sustainable building solutions in the Philippines,” Adrian said.
For the fourth quarter alone, the company’s income rose 72 percent to P455.17 million from the previous year’s P264.76 million.
Revenues for the period, meanwhile, rose 10 percent to P7.47 billion from the previous year’s P6.79 billion.
Holcim said it was able to reduce carbon emissions per ton of cement by 7 percent from 2021 in line with its de-carbonization drive, which also delivered savings of around P1.4 billion in production costs. The effort was driven by efficiency initiatives using digital technologies and increased production of blended cement.
The company said its use of alternative fuels and raw materials increased by 20 percent from 2021. Holcim converted around a million tons of qualified waste into alternative fuels and raw materials for cement production from industrial partners and 35 local governments nationwide.
This also helped the company soften the impact of the surge in fuel and energy costs.
The company also reduced freshwater withdrawals by half last year through improvements to its water recycling facilities to cool equipment, installation of rainwater harvesting structures, and digitalization of monitoring and control tools for greater efficiency.
Aside from lowering the company’s freshwater withdrawals, these initiatives generated savings in 2022.