CEMEX HOLDINGS PHILIPPINES MAKES PROFITS IN 2019 | Marvin Germo
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CEMEX HOLDINGS PHILIPPINES MAKES PROFITS IN 2019

By: Marvin Germo | February 14, 2020

Profit Update

Cemex Holdings Philippines generated a profit in 2019 due to an increase in operating earnings and foreign exchange gains. According to the company, its consolidate income reach P404.80 million in the 4th quarter of 2019. Its full-year profits are now P1.28 billion and compared to a loss of P970.69 million in 2018, 2019’s figures are better. So, are you excited about what’s coming this 2020? More companies will disclose their 2019 earnings starting from today so watch out for updates. In this blog, let’s see how Cemex has gone in 2019.

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Cemex Net Sales Slowed Down

Along with the disclosure of net income, Cemex also said that its net sales were flat for the year, with a 1% increase to P23.6 billion. The gains from the foreign exchange were what stood out the most. The gains hit P453.13 million, higher compared to the loss of P381.44 million reported in 2018. The slowdown in set sales was caused by the 3% decrease in the revenue for the 4th quarter, which is equivalent to P5.37 billion. This was due to abnormal weather conditions last December which affected the performance of domestic cement. The overall performance for the year was a bit slow because of the decrease in construction brought by the postponed approval of the national budget last May.

Cost of Sales In 2019

Meanwhile, the cost of sales for the year was 2% lower than what was reported last period. The cost was only at P13.91 billion because of the company’s savings from lower electricity rates as well as the use of a new mix of the coil. The distribution expenses likewise fell by 9% to {4.23 billion due to the effort of the company to optimize its existing supply chain. The company is happy with the results of 2019 as they pave the way to keep their efficiency, minimize their costs, and enhance the experience of their customers.

Outlook for 2020

This year, Cemex is looking forward to allocating P7.4 billion as its capital expenditure (CAPEX). P1 billion from this will be put for maintenance and the remaining P6.4 billion will be for the expansion of its Rizal’s Solid Cement Plant. The company also stated that during its stock rights offering, it was able to raise P12.77 billion from the 8.29 billion common shares it sold. As of this writing, the company is trying to secure the approval from the authorities regarding it offering to be conducted on March 4.

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