PROFITS of Cemex Holdings Philippines, Inc. fell 47% in the first quarter due to the steep decline in cement volumes after the implementation of an enhanced community quarantine (ECQ) in Luzon in mid-March.
The listed cement manufacturer reported on Monday its net income in the January-to-March period dropped to P89.12 million from P168.64 million a year ago. Its net sales also slid 10% to P5.63 billion.
鈥淎n 8% increase in volumes during the first two months of the year was offset by the effects of the (ECQ) in Luzon and other quarantine measures around the country during the second half of March 2020,鈥 it said in a statement.
Year on year, domestic cement volumes slipped 4% and domestic cement prices fell 6%, reflecting the price drops seen in the second half of last year.
鈥淭he comparable cost base in the first quarter of 2019 was affected by the scheduled kiln maintenance of Solid Cement Plant, higher sales from cement imports, and consumption of purchased clinker in cement production, as a result of the Naga landslide,鈥 it said.
Gross profit climbed 2% to P2.35 billion but was outweighed by a 4% increase in selling and administrative expenses to P767.46 million, a 12% rise in distribution expenses to P1.07 billion, a 21% growth in financial expenses to P279.54 million, and foreign exchange losses of P66.41 million.
鈥淭hese are extraordinary times we live in. Around the world, governments, industries, and people are taking measures to deal with the effects of the COVID-19 pandemic, and (Cemex) is not an exception,鈥 Cemex President and Chief Executive Officer Ignacio Alejandro Mijares Elizondo was quoted as saying.
鈥淥ur focus during these challenging times is on three priorities: first, to protect the health and safety of our employees and their families, customers, suppliers, and communities; second, to support our customers as much as possible in a responsible way; and third, to ensure the long-term business continuity of (Cemex),鈥 he added.
When Luzon was placed under ECQ in March, Cemex said it had to put on hold production at its Solid Cement plant in Antipolo City and suspend the delivery of cement products from that plant.
The ECQ in the National Capital Region and select areas across the country is set to expire on May 15. The government is still undecided on the need to extend the quarantine to contain the spread of the coronavirus.
Shares in Cemex at the stock exchange shed five centavos or 4.50% to P1.06 each yesterday. 鈥 Denise A. Valdez
