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Eagle Cement books P1.2B net profit in Q1, down 25% on decreased construction activities
By TED CORDERO, GMA News Ramon Ang-led Eagle Cement Corp. saw a 25% decline in net profit in the first quarter of 2020 as demand for the construction material decreased amid the lockdown measures to contain COVID-19 spread.
In a disclosure to the Philippine Stock Exchange on Thursday, Eagle Cement said its bottom line stood at P1.2 billion during the January to March period, down 25% from P1.6 billion year-on-year.
This as the cement manufacturer booked P4.5 billion in net sales, down 16% from P5.4 billion a year earlier due to decreased construction activity brought about by the enhanced community quarantine due to the COVID-19 pandemic.
Revenue also fell 14% to P2.3 billion. Prior to the ECQ, the company said it has seen growth in sales volume during the quarter.
Nevertheless, Eagle Cement is optimistic that the demand for cement will recuperate, with the government’s recent declaration to allow certain types of construction to resume in areas under the ECQ.
Total assets grew by 2% to P49.9 billion, while liabilities dropped by 2% to P11.4 billion. Stockholder’s equity rose by 3% to P38.5 billion.
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“Now that construction projects have resumed in the midst of the ECQ, we expect the demand for cement to steadily pick up in the coming weeks. Eagle Cement is fully capable of providing sufficient high-quality cement and we look forward to supporting both public and private sectors in their construction needs as areas in the Philippines shift to more relaxed community quarantine regulations,” Eagle Cement president and CEO Paul Ang said.
The cement maker is also set to complete its fifth cement mill by the third quarter of this year, which will expand its Bulacan plant’s annual cement output by 1.5 million metric tons (MMT) to 8.6 MMT by the end of 2020.
As the Philippines continues the battle against COVID-19, Eagle Cement said it is intent on prioritizing the health and safety of its employees, clients, partners and community.
To date, the company has repacked about 21,000 relief goods and distributed to 16,113 families and 1,000 front liners in 30 barangays within the municipalities of San Ildefonso, Doña Remedios Trinidad, and San Rafael, Bulacan.
“Eagle Cement is fully committed to take necessary measures in order to curb the COVID-19 pandemic, which has affected every Filipino citizen. Our top priority right now is to protect the health of our employees, their families, our clients and partners, and our community in Bulacan and we are committed to support their needs during this crucial time,” said Ang.—AOL, GMA News