CHP reports full year 2022 results
CEMEX HOLDINGS PHILIPPINES, INC. ("CHP") (PSE: CHP), announced today that its consolidated net sales for 2022 amounted to PHP 20.6 billion, a decrease of 2% compared to the prior year. For the fourth quarter, net sales increased by 4% year-over-year due to higher price.
CHP’s domestic cement volume decreased year-over-year by 10% for the full year and 5% for the fourth quarter of 2022. The decline in volume was mainly due to lower cement demand.
CHP’s domestic cement price was up by 9% year-over-year for the full year and fourth quarter of 2022, reflecting the company’s pricing strategy to offset input cost inflation, such as in fuel, electricity, and transport.
CHP’s cost of sales, as a percentage of net sales, was at 67.2% for 2022, an increase of 5 percentage points year-over-year mainly due to higher fuel costs. CHP’s fuel cost, as a percentage of net sales, was at 22.6% for 2022, an increase of 10 percentage points year-over-year driven by elevated energy prices.
Operating EBITDA for 2022 amounted to PHP 2.8 billion, 26% lower year-over-year. The decrease was mainly due to higher cost of sales and lower volume, resulting from the challenges of escalating inflation and subdued market demand. Operating EBITDA margin for the full year declined by 4.7 percentage points year-over-year to 13.8%.
CHP recorded a net loss of PHP 1.0 billion for 2022, mainly as a result of lower operating EBITDA and foreign exchange losses.
Foreign exchange losses, amounting to PHP 934 million for the full year, were attributable to movement in the Philippine Peso to U.S. Dollar exchange rate. Majority of CHP’s foreign exchange losses are unrealized (non-cash expenses).
Luis Franco, President and CEO of CHP, said: “2022 was a challenging year, as economic and political uncertainty translated to unprecedented cost increases, while industry demand softened. 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. Nevertheless, we expect to start to see the benefit of our efforts to reduce cost as the year progresses. I strongly believe that, by executing our strategies and working as one team, we will be able to build a stronger CEMEX Holdings Philippines in 2023.”
For 2023, CHP is guiding for a flat to low-single-digit percentage decrease for its domestic cement sales volume.
CHP, a listed company on the Philippine Stock Exchange, is one of the leading cement producers in the Philippines, based on annual installed capacity. CHP produces and markets cement and other building materials in the Philippines through direct sales using its extensive marine and land distribution network. Moreover, CHP’s cement manufacturing subsidiaries have been operating in the Philippines with well-established brands, such as "APO," "Island," and "Rizal," all having a multi-decade history in the country. For more information please visit: www.cemexholdingsphilippines.com
CHP is an indirect subsidiary of CEMEX, S.A.B. de C.V., a global construction materials company that is building a better future through sustainable products and solutions. CEMEX is committed to achieving carbon neutrality through relentless innovation and industry-leading research and development. CEMEX is at the forefront of the circular economy in the construction value chain, and is pioneering ways to increase the use of waste and residues as alternative raw materials and fuels in its operations with the use of new technologies. CEMEX offers cement, ready-mix concrete, aggregates, and urbanization solutions in growing markets around the world, powered by a multinational workforce focused on providing a superior customer experience, enabled by digital technologies. The shares of CEMEX, S.A.B. de C.V. are listed on the Mexican Stock Exchange and the New York Stock Exchange. For more information please visit: www.cemex.com
For more information on CHP, please visit website: www.cemexholdingsphilippines.com.
This press release contains forward-looking statements within the meaning of the securities laws. CHP intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the applicable securities laws. These forward-looking statements reflect CHP’s current expectations and projections about future events based on CHP’s knowledge of present facts and circumstances and assumptions about future events, as well as CHP’s current plans based on such facts and circumstances. These statements necessarily involve risks, uncertainties, and assumptions that could cause actual results to differ materially from CHP’s expectations, including, among others, risks, uncertainties, and assumptions discussed in CHP's most recent annual report and detailed from time to time in CHP’s other filings with the Philippine Securities and Exchange Commission, which factors are incorporated herein by reference, which if materialized could ultimately lead to CHP’s expectations and projections not producing the expected benefits and/or results. These factors may be revised or supplemented, but CHP is not under, and expressly disclaims, any obligation to update or correct this press release or any forward-looking statement contained herein, whether as a result of new information, future events or otherwise. Any or all of CHP’s forward-looking statements may turn out to be inaccurate. Accordingly, undue reliance on forward-looking statements should not be placed, as such forward-looking statements speak only as of the dates on which they are made. The content of this press release is for informational purposes only, and you should not construe any such information or other material as legal, tax, investment, financial, or other advice.