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Philippines: Building resumption a boon to Eagle Cement in Q1
MANILA, Philippines — Listed cement manufacturer Eagle Cement Corp. recorded a double-digit earnings growth in the first quarter, as construction activities picked up after pandemic restrictions were eased.
What’s new
Eagle Cement registered profits of P1.7 billion in the first 3 months of the year, up 44% year-on-year, financial results obtained by Philstar.com showed. It was the company’s “second best quarter to-date,” it said in a briefing to stockholders
EBITDA, another measure of financial strength, went up 27% on-year to P2.2 billion last quarter.
Why it matters
Building activities ground to a halt last year, and the Ang-led cement maker was among businesses that suffered from a construction slowdown. At the same time, competition among cement players tightened amid hard times, forcing Eagle Cement to lower prices which in turn, hurt its bottom-line.
But as curbs were relaxed this year, with construction picking up in the first quarter on the back of government infrastructure projects, Eagle Cement appears to be joining other companies on the road to recovery.
What the company says
Ahead of an official disclosure to the stock exchange, Eagle Cement’s growth was attributed to a 16% year-on-year uptick in net sales to P5.27 billion as of March. Expansion was recorded “despite the pandemic and much lower cement price,” the company said. “Margins improved and still outperforming its listed peer’s average,” it added.
Other figures
- Gross profit surged 18% annually to P1.98 billion while operating expense inched up by smaller 3% to P487 million from January to March.
Source: https://www.philstar.com/business/2021/05/17/2098876/building-resumption-boon-eagle-cement-q1