CHP reports slight losses for H1 2022

CEMEX Holdings Philippines Inc. (CHP) announced today that its consolidated net sales for the first six months of 2022 amounted to P10.7 billion, a decrease of 2 percent compared to the same period last year.

The decline was due to lower-than-expected demand as CHP’s domestic cement price for the first six months of the year was up by 8 percent due to higher distribution costs.

CHP’s cost of sales increased by 2 percent year over year for the first six months of 2022.

Operating earnings before interest, taxes and depreciation (Ebitda) for the first half of 2022 amounted to P2.1 billion, 9 percent lower year over year. The decrease was mainly due to lower sales volume and higher cost of sales with operating margin declining to 20 percent for the same period.

CHP recorded a net loss of P267 million for the first half of 2022, as a combined result of foreign exchange losses, higher income tax expense and lower operating Ebitda.

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Foreign exchange losses, amounting to P713 million for the first half of the year, were attributable to the movement in the peso-to-dollar exchange rate. Majority of CHP’s foreign exchange losses were unrealized due to the sudden decline of the peso due to the interest rate hikes implemented by the US Federal Reserve.

“We believe the Philippine economy will continue to recover in the months to come despite current challenges. Like many, we are dealing with significant inflationary pressures to input costs such as energy and transport. We will remain focused on executing our strategies, while managing the variables that we can control,” CHP President and Chief Executive Officer Luis Franco said.

For the full year of 2022, CHP warned of flat to low-single-digit percentage decrease for its domestic cement sales volume on account of expected weakening demand and continuing supply chain issues.

CHP’s stock price closed lower on Friday, down 0.04 centavos to 0.71 centavos per share.