Cemex Holdings profit tumbles as Covid-19 pulls down demand

Cemex Holdings reported a 24.2 percent drop in earnings last year to P985 million due to the negative impact of the COVID-19 pandemic and the nationwide lockdown which pulled down industry-wide demand.

Net sales fell 16 percent to P19.7 billion as cement volumes decreased by 11 percent as movement restrictions disrupted construction activities and cement demand.

CHP’s domestic cement prices were 6% lower year-on-year.

Lower volumes and prices were partially offset by lower costs and efforts to contain expenses.

“We remain cautious on the road ahead as headwinds and uncertainty remain.Nevertheless, we will continue to build on our learnings from 2020 to capture the opportunities around us,” said Ignacio Mijares, president of CHP.

Mijares expects the construction of Solid Cement’s new line, which will add 1.5 million tons of annual cement capacity, to be completed in December.

Cemex managed to trim its debt to P12.85 billio, mainly due to the repayment of respective debts owed by Solid Cement Corp. and APO Cement Corp. to CEMEX ASIA, B.V.

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