Cemex Holdings posts double-digit drop in 2020 net income

Listed cement producer Cemex Holdings Philippines Inc. (CHP) saw a double-digit drop in its net income in 2020, as the coronavirus disease 2019 (COVID-19) pandemic weighed on business operations during the year.

CHP on Monday said its net income fell to P985 million last year from P1.3 billion from 2019 to reflect a 24.23% drop, as consolidated net sales dropped by 16% while earnings before interest, taxes, depreciation, and amortization (EBITDA) declined 1% to P4.2 billion.

"Our results in 2020 were made possible by the effort and dedication of our employees, despite the unexpectedly challenging and extraordinary year. We remain cautious on the road ahead as headwinds and uncertainty remain," Ignacio Mijares, president and chief executive officer at CHP, said.

"Nevertheless, we will continue to build on our learnings from 2020 to capture the opportunities around us," he said in a regulatory filing.

In the same disclosure to the local bourse, CHP said it expects the construction of its new cement line to be completed by December this year after the lifting of the new kiln into position in January. Upon completion, this will add 1.5 million tons of annual cement capacity.

CHP produces cement and cement products such as ready-mix concrete and clinker in the Philippines through direct sales under its marine and land distribution network. Its cement manufacturing subsidiaries count as brands APO, Island, and Rizal.

Shares in the company opened Monday at P1.38 apiece, up by 1 centavo or 0.73% from the previous close of P1.37 apiece last Friday, February 12. —Jon Viktor Cabuenas/KG, GMA News