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Eagle Cement posts P1.03B net income in Q1, up 30%
Newly-listed Eagle Cement Corp. posted a net income of P1.03 billion in the first quarter of 2017, up 30 percent from P793.9 million a year earlier on the back of higher in sales volume.
Sales volume grew in double-digit terms, but "we cannot give the exact percentage," Eagle Cement Chief Finance Officer and Treasurer Monica Ang said in a press briefing in Mandaluyong City on Friday.
Ang said, however, that net sales grew by 19 percent to P3.77 billion from P3.17 billion year-on-year.
Despite a "single-digit" decline in cement prices, she noted that Eagle Cement managed to grow by 30 percent.
"Price pressures will continue to be a challenge, but it's already present in Q1 and we still grew by 30 percent," Ang said.
"We have the best margins compared to the competition that allowed us stronger advantage, because we can really compete whether or not prices go down because of more imports volume," she added.
The cement maker reported an earnings before interests, taxes, depreciation and amortization (EBITDA) of P1.610 billion, up 29 percent from P1.249 billion.
For the rest of 2071, Eagle Cement expects to sustain positive earnings growth despite the seasonal decreases in demand for cement during the rainy season.
"All players experience a good season for the first half because of the weather. But we expect construction activity to slow down in the third and fourth quarter. It’s an expected cycle. Every year, there are continued price pressures. But because of our volume and capacity ... that will allow us to remain positive in our outlook on growth prospects for Q2 and Q3," Ang said.
Eagle Cement President and CEO Paul Ang said the company aims to sell at least four million tons this year. "Market is growing so it's possible naman," he noted.
In late May, Eagle Cement debuted on the Philippine Stock Exchange and raised as much as P7.384 billion. The company intended to use the money to partially finance the construction of a cement plant in Cebu – which is expected to be completed by 2020 – and add two million metric tons to production capacity.
On the Philippine Stock Exchange, shares of Eagle Cement were down 1 percent at P15.84 per share by the noon break on Friday.
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