CHP reports first quarter 2022 results

CEMEX HOLDINGS PHILIPPINES, INC. ("CHP") (PSE: CHP), announced today that its consolidated net sales amounted to PHP 5.2 billion, an increase of 1% in the first quarter of 2022, versus the comparable period in 2021.

Volumes improved during the quarter, after a slow start affected by the recovery from Typhoon Odette and a surge in Omicron-led COVID-19 cases. For the first three months of 2022, CHP’s domestic cement volumes decreased by 6% year-over-year.

CHP’s domestic cement price in the first quarter were up by 3% sequentially, as price updates were made during the quarter mainly to reflect input cost inflation in fuel and transport.

Operating EBITDA in the first quarter amounted to PHP 1.0 billion, 2% higher year-over-year.

Operating EBITDA margin remained flat year-over-year at 20% in the first quarter, mainly due to price updates and efficiency initiatives.

Net income for CHP was around PHP 261 million in the first quarter of 2022, versus PHP 205 million in the comparable period of 2021, with higher operating earnings and a benefit in deferred income taxes booked during the quarter.

Ignacio Mijares, President and CEO of CHP, said: “We continue to adjust and adapt our operation to the challenging market situation. We will continue to contribute to economic recovery and take climate action to build a better and more sustainable future.”

For full year 2022, CHP expects its cement volumes to grow by mid-single-digit percentage, with construction activity picking up towards the second half the year. Inflationary pressures are expected to continue amidst uncertainty over external factors, such as the Russia invasion of Ukraine.

Works for CHP’s Solid Cement New Line have resumed. The new contractors for the project, Atlantic Gulf and Pacific Company of Manila, Inc. and Betonbau Phil., Inc., have been mobilizing on-site and deploying equipment and manpower. Civil works for silos and mechanical installation have restarted. CHP expects the construction of the Solid Cement New Line to be completed in March 2024.

CHP is sourcing more clean energy with the successful commissioning of the heat recovery facility in its APO Cement Plant. 8% of APO Plant’s power requirement is expected to be self-generated. CHP’s Solid Cement Plant is also able to self-generate 18% of its requirement through heat recovery.

CHP, a listed company at the Philippine Stock Exchange, is one of the leading cement producers in the Philippines, based on annual installed capacity. CHP produces and markets cement and other building materials in the Philippines through direct sales using its extensive marine and land distribution network. Moreover, CHP’s cement manufacturing subsidiaries have been operating in the Philippines with well-established brands, such as "APO," "Island," and "Rizal," all having a multi-decade history in the country. For more information please visit: www.cemexholdingsphilippines.com

CHP is an indirect subsidiary of CEMEX, S.A.B. de C.V., a global construction materials company that is building a better future through sustainable products and solutions. CEMEX is committed to achieving carbon neutrality through relentless innovation and industry-leading research and development. CEMEX is at the forefront of the circular economy in the construction value chain, and is pioneering ways to increase the use of waste and residues as alternative raw materials and fuels in its operations with the use of new technologies. CEMEX offers cement, ready-mix concrete, aggregates, and urbanization solutions in growing markets around the world, powered by a multinational workforce focused on providing a superior customer experience, enabled by digital technologies. The shares of CEMEX, S.A.B. de C.V. are listed on the Mexican Stock Exchange and the New York Stock Exchange. For more information please visit: www.cemex.com

For more information on CHP, please visit website: www.cemexholdingsphilippines.com.