Holcim’s solid performance continues in Q1 2023 with 31% overproportional Operating EBIT growth

Horia Adrian, President and CEO of Holcim Philippines, Inc. said: “We remain focused on strengthening cost discipline, sustainability, and innovation to raise business performance. Our successful carbon footprint reduction marked by the rebrand of our flagship product to Excel ECOPlanet is proof of our ability to deliver on this commitment. Alongside bolstering our cement business, we saw significant growth in our other offerings that highlight the value of diversification into other building materials. We will further accelerate our transformation to lead the industry in innovative and sustainable building solutions.”

FINANCIAL PERFORMANCE
Cement performance was driven by improved prices and better contributions from a wider base of customers. Furthermore, the Company’s other product lines – aggregates, dry mortar and ground calcium carbonate – delivered solid performance. These enabled the Company to record stable Net Sales of Php 6.6 billion despite softer cement demand.

Amid continued energy costs pressures, Holcim Philippines realized further savings from its efficiency improvement and decarbonization initiatives. The cornerstone of the efficiency program is linked to its Plants of Tomorrow initiative aimed at fostering data-driven decision making. As of the first quarter, the Company has deployed 94 digital projects across its operations.

Recycling remains an important lever of decarbonization by embedding more recycled materials into the Company’s cement products as well as increasing the amount of alternative fuels used in operations. From the beginning of the year, Holcim Philippines has recycled 290,000 tons of materials.

With the Company’s steady topline and effective cost management, Operating EBIT grew by 31% year-on-year to Php 680 million. Excluding one-off costs related to associates, Net Profit is almost at par versus prior year amounting to Php413 million.

KEY DEVELOPMENTS
The Company has relaunched its flagship blended cement to Excel ECOPlanet to highlight its success in significantly reducing the product’s carbon footprint while still great construction performance.

Excel ECOPlanet continues to provide excellent performance for general construction applications, with concrete made durable due to its high resistance to sulfate and low porosity. Excel ECOPlanet also improves workability and minimizes shrinkage and cracks in concrete.

Introduced by the Holcim Group in 2021, ECOPlanet is the world’s broadest range of green cement with at least 30% lower emissions to help builders reduce the carbon footprint of construction. Launched over 20 years ago, Excel was among the first blended cements produced by Holcim Philippines for general construction and has become a flagship brand in the market with over two billion bags sold.

For driving water efficiency and management programs that preserve this resource for host communities and the environment, the Company was recognized by the National Water Resources Board (NWRB) during the World Water Day Awards PH 2023.

Holcim Philippines received the Water Wise Award for successfully reducing freshwater withdrawals in its operations by 64% since 2018 through efficiency initiatives that lessen consumption and safeguarded water resources of host communities. Holcim was among 21 individuals and organizations recognized for water stewardship during the annual event organized by the Department of Environment and Natural Resources, the NWRB, and Maynilad Water Services Inc.

	January to March 2023	January to March 2022
Net Sales	Php 6,640,209	Php 6,736,887
Operating EBITDA	Php 1,095,053	Php 960,537
Operating EBIT	Php 680,248	Php 519,802
Net Profit	Php 412,954**	Php 420,610

*For more information on our financial performance this quarter, please refer to our page at the Philippines Stock Exchange website or the section on disclosures on our Company’s website.

**Like-for-Like excluding one-time losses from associates.