Inflation storm batters Cemex Q1 earnings

MANILA, Philippines — Cemex Holdings Philippines, Inc. (CHP) stumbled into a net loss in the first quarter as price pressures pared its earnings haul.

In a disclosure sent to the Philippine Stock Exchange on Wednesday, CHP retreated to a net loss position of P355 million from January to March, noting operating earnings shrank as cost of sales proved too expensive.

Consolidated net sales sank 11% year-on-year to P4.6 billion in the first quarter. As it is, CHP saw domestic cement volumes retreat 16% on-year on the back of anaemic demand.

CHP is targeting a “low-single-digit percentage” decline in its domestic cement sales volume in 2023.

On the one hand, CHP cement prices surged 5% on-year in the first quarter.

The company noted the increases were implemented to offset energy, fuel, and transport costs.Operating earnings before interest, taxes, depreciation, and amortization plunged 90% on-year to P102 million in the first quarter.

“Although we have already noticed an inflection point in costs such as fuel and electricity, our expectations remain that market conditions and cost inflation will continue to be challenging through the first half of 2023,” said Luis Franco, president and CEO of CHP. — Ramon Royandoyan