CEMEX POSTS LOWER CEMENT SALES
Listed Cemex Holdings Philippines, Inc announced that its consolidated net sales decreased by 17%, reaching PHP 15.1 billion during the first nine months of 2020, versus the comparable period in 2019. Sales decreased by 6% year-over-year in the third quarter, reaching about PHP 5.5 billion.
CHP’s domestic cement volumes decreased by 12% during the first nine months of 2020 versus the same period in 2019. For the quarter, its domestic cement volumes declined by 3% year-over-year.
CHP’s domestic cement prices during the first nine months of the 2020 were 5% lower year-over-year, reflecting declines which began in the second half of 2019. CHP’s Operating EBITDA during the first nine months of 2020 was around PHP 3.3 billion, a decrease of 5% versus the same period in 2019, and its Operating EBITDA margin was at 22% for the first nine months of 2020.
Lower volumes and prices were partially offset by lower costs and cost containment measures, including maintenance cost deferrals. Net income for CHP was at PHP 758.1 million for the first nine months of 2020, versus PHP 874.7 million in the same period last year, due to the negative impact of the COVID-19 pandemic on operating earnings.
Ignacio Mijares, President and CEO of CHP, said: “As the country takes steps towards reopening the economy, the impact of the pandemic remains a concern. We must continue to adapt to the challenges and limitations brought about by COVID-19.
Full execution of the government’s infrastructure plan can help accelerate economic recovery. Nevertheless, we continue to be optimistic on the long-term growth prospects of the Philippines.” As of September 30, 2020, CHP’s total debt was at PHP 13,510 million, a decrease of around PHP 6.6 billion from December 31, 2019. The lower debt level is a result of the repayment of respective debts owed by Solid Cement Corporation and APO Cement Corporation to CEMEX ASIA, B.V. using a portion of the proceeds raised from CHP’s Stock Rights Offering during the first quarter of 2020.