Cemex net loss widens in 3Qon lower prices, sales volume

Cemex Holdings Philippines Inc., a listed cement manufacturer, said Friday rising operating cost and lower cement sales in the third quarter resulted in a wider net loss of P583 million compared with a P552 million loss in the same period last year.

Results for the third quarter pushed nine-month net loss to P1.2 billion this year from P819 million last year. 

Cement said sales volume in the July-September period was the highest for a quarter so far this year but external uncertainties continue to undermine domestic demand for cement. Consolidated net sales for the third quarter declined 14 percent year-on-year to P4.4 billion while that for first nine months dropped 15 percent year-on-year to P13.5 billion on lower cement volumes sold.

Operating earnings before other expenses showed a net loss for the third quarter of P175 million,  a reversal from a net gain of P208 million in the same period of 2022. The decrease year-over-year was mainly due to lower prices. 

Cemex president and chief executive officer Luis Franco said he is pleased with the initial progress of the company’s “EVOLVE efficiency program” in  optimizing operations, streamlining processes, increasing supply chain efficiency, and improving  the energy mix.

“Even so, much more work needs to be done, as we expect challenging market conditions and cost pressures to persist during the fourth quarter of 2023. In this year of transition for our company, we remain dedicated to finding opportunities to improve our overall efficiency and profitability by proactively managing the variables we can control,” said Franco.

Cemex said the limestone crusher system at its new Solid Cement plant was completed during the quarter. With the ongoing electrical installation, mechanical installation of various equipment, construction of material transportation system, and construction of the different buildings for the new line, Cemex now expects the construction of  Solid Cement’s new line to be completed during the third quarter of 2024.