EAGLE delivers 6% net earnings growth in 9M18, Expands Bulacan Cement Capacity to 8.6MMT
Nov 15, 2018
09 NOVEMBER 2018 – Listed local cement company Eagle Cement Corporation (EAGLE) managed to maintain its earnings momentum, with net income rising by 6% to Php3.5 billion for the first nine months of 2018 compared with Php3.3 billion a year earlier, bolstered by double digit growth in sales volume and stable prices.
EAGLE generated net sales of Php12.2 billion for the first nine months of the year, a 9% increase from Php11.2 billion in the same period in 2017. Gross profit margin ended at 46%. Despite higher input costs during the period, EBITDA still modestly grew by 3% with EBITDA margin registering at 42%.
For the period covering July-September, the Company posted net sales of Php4.0 billion, 6% better relative to the comparable period. Net income rose by 8% to Php1.2 billion versus the same quarter in 2017.
“We remain aggressive and committed in growing our Company organically as we are leveraging on the rising cement demand in the country on the back of the infrastructure push of the government and optimism on the private sector,” President & CEO Paul Ang said. “In 2019, we will start building additional grinding capacity in Bulacan that will add 1.5 million metric tons, bringing our plant’s total annual cement capacity to 8.6 million metric tons” he added.
As of end-September 2018, the Company’s total assets increased by 4%, amounting to Php44.0 billion. The Company maintained a favorable level of debt to equity ratio of 0.40x and financial debt to equity of 0.27x, providing flexibility on funding strategy to support its expansion plans.