Holcim Cement Philippines Inc. saw its net income decline 25.6 percent in the first six months to P1.56 billion from P2.1 billion a year ago, as costs grew faster than sales.
Holcim said in a disclosure to the stock exchange first-half net sales climbed 7.8 percent to P18.75 billion from P17.39 billion in the same period in 2017.
Cost of sales rose 16.4 percent to P14.8 billion from P12.75 billion a year earlier, driven by increasing cost of fuel, power, and distribution, coupled with the impact of the depreciation of the peso against the dollar.
Holcim said production in the first half was better than in the same period last year arising from improved productivity across all plants.
Holcim said in the second quarter alone, net income reached P886.6 million, down 25.5 percent from P1.16 billion booked in the second quarter of 2017. Net sales increased 18.5 percent to P10.14 billion from P8.6 billion in 2017.
The double-digit revenue growth in the second quarter was also an improvement from the three previous quarters of decline in sales.