MANILA, PHILIPPINES. JULY 29, 2022 – CEMEX HOLDINGS PHILIPPINES, INC. (“CHP”) (PSE: CHP), announced today that its consolidated net sales for the first six months of 2022 amounted to PHP 10.7 billion, a decrease of 2% compared to the same period last year. For the second quarter, net sales decreased by 5% year-over-year due to lower volume.
CHP’s domestic cement volume decreased by 8% for the first six months of 2022, and by 11% during the second quarter, compared to the same periods in 2021. The decline in volume was due to lower-than-expected demand.
CHP’s domestic cement price for the first six months of the year was up by 8% as price updates were made mainly to reflect input cost inflation in fuel and transport.
CHP’s cost of sales, as a percentage of net sales, increased by 2 percent points year-overyear for the first six months of 2022 mainly due to higher fuel costs. CHP’s fuel cost, as a percentage of cost of sales, increased by 12 percentage points year-over-year for the first six months driven by elevated energy prices.
Operating EBITDA for the first six months of 2022 amounted to PHP 2.1 billion, 9% lower yearover-year. The decrease was mainly due to lower volume and higher cost of sales. Operating EBITDA margin for the first six months of the year declined by 1.5 percentage points yearover-year to 20%.
CHP recorded a net loss of PHP 267 million for the first half of 2022, with a net loss of PHP 528 million recorded during the second quarter, mainly as a result of foreign exchange losses, higher income tax expenses, and lower operating EBITDA.
Foreign exchange losses, amounting to PHP 713 million for the first half of the year, were attributable to movement in the Philippine Peso to U.S. Dollar exchange rate. Majority of CHP’s foreign exchange losses are unrealized (non-cash expenses).
Income tax expenses, amounting to PHP 560 million for the first six months of the year, derived
mainly due to a decrease in deferred tax assets (non-cash expenses).
Luis Franco, President and CEO of CHP, said: “We believe the Philippine economy will continue to recover in the months to come, despite current challenges. Like many, we are dealing with significant inflationary pressures to input costs such as energy and transport. We will remain focused on executing our strategies, managing the variables that we can control.”
For full year 2022, CHP is now guiding a range of flat to low single-digit percentage decrease for its domestic cement sales volume. Challenging conditions are expected to persist for the rest of the year, amidst uncertainty tied to pandemic supply chain issues and the Ukraine War.
Regarding CHP’s Solid Cement new production line, the pouring of concrete foundation for cement silos was completed during the second quarter, while slip form works for raw meal silo and clinker silo have been ongoing. Mechanical installation of equipment is also ongoing.
The use of Vertua® cement for the concrete requirements of the silos is estimated to reduce CO2 emissions equivalent to 121 gasoline powered passenger vehicles off the road for a year or 9,321 tree seedlings grown for ten years. CHP expects the construction of the Solid Cement new production line to be completed in March 2024.
