Eagle Cement posts P3.4 billion net income in 2020

Manila, Philippines— Publicly-listed cement manufacturing firm Eagle Cement Corporation (Eagle Cement) posted a 44% dip in net income to P3.4 billion, down from P6.0 billion in 2019, after a strong start in 2020 was disrupted by the implementation of lockdown measures in the wake of the Covid-19 pandemic that began in mid-March of the year.

The Company reached full-year net sales of P13.9 billion, down by 30% from P19.8 billion it made a year ago, narrowing its 44% decline in the first half due to a more relaxed restrictions in the second half of the year. Despite the decline in the Company’s historically-strong numbers, Eagle Cement continued to outperform its listed peers’ average margins.

For the second semester of 2020, Eagle Cement generated net sales of nearly P8.0 billion, 14% lower compared to P9.3 billion in the same period in 2019 but 35% higher versus the first half of the same year.

“The halting of our operations due to pandemic-related restrictions took a hit on our results in the first half of 2020, but the remaining half proved that we are well-positioned to bounce back. We saw improvement in our volume and we are able to bring down our production cost in 2020. We will continue to work on aggressive marketing and better pricing strategies for this year and this will be complemented by focusing on cost control initiatives in our operations, which will enable us to deliver better returns in 2021.” says Eagle Cement President & CEO Paul Ang.

Eagle Cement also remains in a solid financial position geared to prop the Company back to double-digit growth following the reopening of the economy and national vaccine rollouts. The Company ended the year with total assets amounting to P49.7 billion, a 1% gain from the end-2019 figure. Total liabilities saw a 7% decrease to P10.9 billion from P11.7 billion over the same period. Eagle Cement also sustained its current gearing at low levels, with debt-to-equity and financial debt-to-equity ratios registering at 0.28x and 0.16x, respectively. The current ratio stands at 4.14x.

“We continue to formulate and execute strategies that will keep us competitive amid different events affecting the market. We are hopeful for the ongoing national vaccination program and are eager to see all industries recover. We are prepared to cater to the market’s demand now and in the future with our expansion underway. Despite the pandemic, we also remain committed to uphold our corporate values for all of our stakeholders and extend help to them wherever possible,” Ang added.

Eagle Cement’s expansion in Bulacan, with its fifth finish mill, third packhouse and other supporting facilities, is nearly complete and will be operational by the second quarter of 2021. This expansion will increase the Company’s production capacity by 1.5 million metric tonnes (MMT), bringing its total annual cement capacity to 8.6 MMT, reinforcing its position as the single largest cement plant in the Philippines.