CEMEX Philippines' 2021 Sales Increase 6 Percent
CEMEX Holdings Philippines, Inc. ("CHP") (PSE: CHP), announced today that its consolidated net sales amounted to PHP 20.9 billion, an increase of 6% in 2021 versus 2020, due to higher volumes. Sales were flat year over year in the fourth quarter, at about PHP 4.6 billion, due primarily to Typhoon Odette which disrupted APO Cement’s operations in the central part of the country in December.
Photo Insert: The Apo Cement Plant in Cebu
CHP’s domestic cement volumes increased by 7% in 2021 versus 2020. For the fourth quarter, domestic cement volumes decreased by 2% year-over-year.
CHP’s domestic cement prices in the fourth quarter were 3% higher year-over-year. For 2021, CHP’s domestic cement prices declined 2% due to product mix, specifically a higher proportion of customer pick-up sales versus the prior year. Net of freight charges, CHP’s domestic cement prices in 2021 were flat versus 2020.
CHP’s Operating EBITDA for 2021 declined 7% to PHP 3.9 billion, mainly due to higher cost of sales and lower volumes in the typhoon-impacted fourth quarter.
Operating EBITDA margin was 18% for 2021, compared with 21% in 2020. Net income for CHP was around PHP 726 million in 2021, versus PHP 985 million in 2020, mainly due to foreign exchange losses related to the Philippine Peso.
In 2021, CHP’s APO Cement Plant and Solid Cement Plant recorded operational milestones related to higher production, lower clinker factor, and increasing use of alternative fuels.
CHP is now offering its APO and Rizal “High Strength Vertua Classic” and “Portland Vertua Ultra” products. These new generation cements are high-quality and environment-friendly with a 15% to 40% lower carbon footprint than our traditional Portland cement.
Ignacio Mijares, President and CEO of CHP, said: “Despite the challenges of COVID-19, adverse weather, and rising input costs, we are proud of our accomplishments in 2021. We embraced health and safety, enhanced customer experience, and advanced in our sustainability targets.”
For 2022, CHP expects its cement volumes to continue recovering, with construction activity to remain a driver of the country’s economic growth. The 2022 national budget is the highest in Philippine history, 11.5% higher than the 2021 national budget, with 17% allocated to the Department of Public Works and Highways and Department of Transportation.