Concreat Holdings Philippines Inc. is raising cement prices in stages and tightening operations to reverse its losses, betting that higher selling prices and plant improvements will restore profitability next year.
President and CEO Herbert M. Consunji said the company was taking a calibrated approach to price adjustments to recover higher fuel, coal, electricity and freight costs without triggering a sharp drop in sales.
He clarified that the P28-to-P40 increase per bag represented the cumulative adjustment from March to November, not a single round of price hikes.
“Cost recovery lang,” Consunji said, citing the pressure from higher operating expenses.
The company is also benefiting from a weaker peso, higher freight costs and safeguard duties that have made imported cement more expensive, allowing local producers to regain market share.
“There’s still demand. Kasi nadi-dislodge namin yung import. So we’re eating up … their market,” he said.
But higher prices alone may not be enough to secure a sustained recovery. Concreat is counting on plant rehabilitation, better logistics and improved productivity to lower operating costs and make its operations more reliable.
Long-term supply contracts and coal sourced from Semirara Mining and Power Corp. help cushion fuel costs, although peso depreciation continues to weigh on earnings. Consunji said the company was not yet at break-even despite generating positive operating cash flow.
“Turnaround next year. We’ll see. As long as the prices will hold,” he said.
Concreat has been spending on kiln rehabilitation, logistics and power improvements. Its Antipolo kiln is expected to resume operations by Nov. 15, while upgrades at its Cebu port have increased vessel-loading capacity to as many as eight ships from two. Further improvements are intended to raise capacity to 10 vessels.
“I hope the things that we have spent will pay back,” Consunji said.
The investments are central to Concreat’s recovery plan, with the company seeking to translate better pricing into stronger margins while reducing production and distribution costs. Whether that spending delivers a sustained return will depend on the durability of cement prices and the company’s ability to improve operating efficiency.
