Eagle Cement Reports Net Decrease
One of the biggest cement producers in the Philippines, Eagle Cement Corporation has reported a decrease in net income to P2.7 billion compared to P4.7 billion in the same period last year, although things are looking up in the third quarter.
As said to the Philippine Stock Exchange, Eagle Cement that in the first nine months of 2020, net sales decreased to P10.0 billion, lower than the P15.3 billion it reached in the same period last year.
The losses came after a strong beginning in 2020 but were then interfered by the lockdown and quarantine measures.
Gross profit came at P4.1 billion, which was a decline from P6.7 billion in the same period last year.
In the third quarter when the country eased its lockdown measures, Eagle Cement showed signs of improvement. Eagle Cement reached P1,4 billion, the same level in 2019, in spite of its net sales decreasing 16 per cent year-on-year to P4.1 billion.
The decrease in net sales was less steep than the second quarter fall of73 per cent. Quarter on quarter, net sales increased by 192 per cent. Meanwhile, gross profit also declined by 14 per cent to P1.8 billion and earnings before taxes, interest, amortization, and depreciation increased by 9 percent to P2.0 billion, with a wider margin of 50 per cent.
“The resumption of major infrastructure projects and the retail segment boosted sales. We are optimistic that fourth-quarter results will be better as more sectors of the economy are reopened,” said Eagle Cement President and CEO Paul Ang.
For next year, Eagle Cement is set to construct a new mill in Bulacan that has a capacity of 1.5 metric tons and total annual cement output to 8.6 million metric tons. This Is expedited to support other projects of Eagle Cement as construction operations are expected to continue next year.