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22 Sep 2021 by Eagle Cement
10 NOV 2020 — Eagle Cement Corporation (Eagle Cement), one of the largest cement producers in the Philippines, showed signs of improvement in its third-quarter financial performance as the government eased COVID-19 quarantine restrictions to Modified General Community Quarantine (MGCQ) in most areas and allowed construction and major infrastructure projects to resume.
For the quarter ending September 30, 2020, Eagle Cement’s net profit reached the same level in 2019, amounting to P1.4 billion, despite net sales slipping 16% year-on-year to P4.1 billion. The decline in net sales was less steep than the second-quarter fall of 73%. Quarter on quarter, net sales significantly grew by 192%.
Gross profit for the quarter similarly declined by 14% to P1.8 billion. Meanwhile, EBITDA grew by 9% to P2.0 billion, with a wider margin of 50%.
“The resumption of major infrastructure projects and retail segment boosted sales. We are optimistic that fourth-quarter results will be better as more sectors of the economy are reopened,” said Paul Ang, President & CEO of Eagle Cement, in a statement.
Eagle Cement recorded net sales of nearly P10.0 billion in the first nine months of the year, 35% lower than the P15.3 billion it generated in the corresponding period last year, after a strong start in 2020 was disrupted by the implementation of lockdown in the wake of the Covid-19 pandemic that began in mid-March this year. Gross profit was at P4.1 billion, a 39% decline from P6.7 billion a year ago, with margin registering at 41%.
The financial condition of the Company for the period ended September 30, 2020, remains healthy, allowing financial flexibility and isolates Eagle Cement from the drastic effects of the pandemic. Total assets at the end of September stood at P47.7 billion, still large despite a 3% decline from end-2019. Total liabilities were down 9% to P10.7 billion while equity slightly dropped by 1% to about P37.0 billion.
As a sign of its optimistic outlook despite the pandemic, Eagle Cement is scheduled to complete by the first quarter of 2021 a new mill in Bulacan that will have a capacity of 1.5 metric tons and boost total annual cement output to 8.6 million metric tons. This production capacity is expected to support Eagle Cement’s upcoming projects as most construction operations resume by next year.