Eagle Cement’s Q1 profit down 25%
Ang family-led cement manufacturer Eagle Cement Corp. saw a 25 percent year-on-year drop in first quarter net profit to P1.2 billion as construction activities were halted in mid-March as part of measures to curb the coronavirus (COVID-19) pandemic.
But Eagle is optimistic that the demand for cement will recuperate, with the government’s recent declaration to allow certain types of construction to resume in areas under the enhanced community quarantine (ECQ).
Due to the decreased construction activity brought about by the ECQ, Eagle’s net sales contracted by 16 percent year-on-year to P4.5 billion in the first three months. Cash flow fell by 14 percent to P1.7 billion.
Prior to the ECQ in mid-March, Eagle reported growth in sales volume during the quarter.
“Now that construction projects have resumed in the midst of the ECQ, we expect the demand for cement to steadily pick up in the coming weeks. Eagle Cement is fully capable of providing sufficient high-quality cement and we look forward to supporting both public and private sectors in their construction needs as areas in the Philippines shift to more relaxed community quarantine regulations,” EAGLE president and chief executive officer Paul Ang said in a press statement on Thursday.