Listed cement manufacturer Holcim Philippines Inc. on Friday posted 36 percent drop in 2022 net income to P1.64 billion from P2.57 billion in the previous year, with gains in the second half and price increases failing to make up for the higher cost of fuel and energy.
Even as Holcim managed to raise product prices and reduce fixed cost by 11 percent, those weren’t enough to cover the surge in fuel and energy costs which increased by 60 percent. Fuel and energy costs was 64 percent of production expenses.
Holcim said because of softer demand, net sales slipped to P26.59 billion last year from P26.95 billion the previous year.
The cement company said it delivered a number of sustainability achievements that improved business performance and increased positive environmental and social impact in 2022. Among its remarkable sustainability highlights was the reduction of carbon emissions per ton of cement by 7% from 2021 in line with its decarbonization drive which also delivered savings of 2 around PHP1.4 billion in production costs.
Holcim added that it converted around a million tons of qualified wastes into alternative fuels and raw materials for cement production from industrial partners and 35 local governments nationwide. This also helped the company soften the impact of the surge in fuel and energy costs.
It also reduced freshwater withdrawals by 50 percent in 2022 through improvements to its water recycling facilities to cool equipment, installation of rainwater harvesting structures, and digitalization of monitoring and control tools for greater efficiency. Aside from lowering the Company’s freshwater withdrawals, these initiatives generated savings in 2022.
