Company registers record-high profit, positive outlook remains amid Line 3 opening
Eagle Cement Corporation (EAGLE) continues its industry-leading streak as the cement firm registered a record-high P4.26 billion in net income for 2017, a 4% increase from the previous year.
The result is driven by robust growth in sales volume and cost efficiencies achieved through upgrading and debottlenecking efforts in existing production lines. Eagle also remained resilient amid last year’s tighter competition in the industry, as it posted P14.27 billion in net sales, a 12% jump from 2016.
“Our recent annual performance is proof of how our well-established operational strengths and sound cost structure continue to gain us healthy margins. We are keen on maintaining and improving, wherever possible, our efficiencies so we can deliver maximum returns to our investors and supply the cement demands of the public,” President and Chief Executive Officer Paul Ang declared.
EAGLE’s gross profit retained at P6.93 billion despite the spike in fuel and electricity cost. This is due to the company’s decrease in consumption of imported clinker which it is able to source from its own two production lines. EAGLE’s Waste Heat Recovery System also saved EAGLE around 21 million kWh in energy which contributed to further cost efficiency.
Preparing for new markets
Ang said the company is preparing to commission its third line in Bulacan within the year. The third production line will add 2 million metric tons to EAGLE’s current capacity, and expand its market reach to the Bicol and MIMAROPA regions.
“The opening of our third production line will allow us to better serve new markets in Regions IV and V. This will give our company an increased role in the country’s infrastructure push, as we help build the future of Filipino communities,” Ang expounded.
EAGLE’s outlook for the local cement sector remains bullish, as evident in its expansion strategy. Apart from the completion of its third production line, the company is also working on its fourth production line in Malabuyoc, Cebu, an undertaking that will give EAGLE nationwide reach through markets in Visayas and Mindanao.
“Private consumption is still strong as conglomerates embark on expansion strategies, and the government remains steadfast in its national infrastructure push. All of our efforts are geared towards helping provide the cement demand of the local economy, through quality products that will become part of the country’s future,” Ang concluded.