MANILA – Holcim Philippines Inc. booked a 65-percent drop in profit in 2017 as cement demand declined amid sluggish growth of the construction industry and tighter competition.
Holcim told the local bourse its net income reached PHP2.4 billion last year compared with PHP6.9 billion in 2016.
It said prices were impacted as competition further tightened with the influx of imported cement, causing revenues to decline year-on-year by 13.9 percent to PHP34.7 billion in 2017.
Holcim Philippines President and Chief Executive Officer Sapna Sood said the company had launched projects to strengthen customer focus, improve the efficiency of plant and logistics operations, manage costs and offer more innovative building solutions.
The company started a PHP3-billion project in the third quarter of 2017 to raise its cement production capacity by 2 million metric tons in preparation for the projected rise in demand as government ramps up infrastructure spending across the country.
“Despite a challenging 2017, we pursued initiatives and continued investments that prepare us for the opportunities ahead in one of the best-performing economies in the region,” Sood said.