Cemex Holdings’ net loss widens to P195M on forex losses
CEMEX Holdings Philippines, Inc. incurred a net loss of P195 million in the fourth quarter, wider than the P172 million posted a year ago, after booking volume decline and foreign exchange losses.
“2022 was a challenging year, as economic and political uncertainty translated to unprecedented cost increases, while industry demand softened,” Cemex Holdings President and Chief Executive Officer Luis Guillermo Franco Carrillo said in a press release.
Although the cement company’s net sales rose by 4% to P4.76 billion during the quarter from P4.58 billion in 2021, its cost of sales reached P3.82 billion, up by 20% from P3.17 billion previously.
The company also reported a 5% decrease in its domestic cement volume, which it said was mainly due to soft demand.
For the full-year 2022, the company suffered a P1.01 billion net loss, a reversal from the P725.5 million net income recorded in 2021. Its topline last year was slightly lower at P20.57 billion, down by 1.5% from P20.89 billion.
The company’s cost of sales amounted to P13.82 billion in 2022, up by 6.5% from P12.98 billion the year before.
Its domestic cement volume last year likewise decreased by 10%, which the company said reflected low cement demand, challenging industry dynamics, and the effects of its pricing strategy.
In 2022, Cemex Holdings’ domestic cement prices were 9% higher to offset the impact of higher input costs due to the high prices of fuel, electricity and transport.
The company also incurred foreign exchange losses amounting to P934 million in 2022 due to the movement of the peso-dollar exchange rate.
For 2023, the company said it would try to achieve a flat to low-single-digit percentage decrease in its domestic sales volume.
“We expect 2023 to be a year of transition for our company. We anticipate that market conditions and cost inflation will remain challenging through the first half of the year,” said Mr. Franco Carillo.
“Nevertheless, we expect to start to see the benefit of our efforts to reduce cost as the year progresses,” he added.
On Tuesday, shares in the company closed lower by a centavo or 0.85% at P1.17 each. — Justine Irish D. Tabile