QUARTERLY BRIEFING 1H2017 - Eagle Cement Corporation · 2017. 12. 14. · Balance Sheet Position 6...
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QUARTERLY BRIEFING – 1H2017 8 August 2017
Transcript of QUARTERLY BRIEFING 1H2017 - Eagle Cement Corporation · 2017. 12. 14. · Balance Sheet Position 6...
QUARTERLY BRIEFING – 1H20178 August 2017
Financial Performance
In PhP millions; Unaudited First Half ending June 302
Margins1H
20161H
2017
Gross Profit
51% 48%
EBITDA 45% 45%
EBIT 40% 40%
Net Income
30% 30%
Net Sales EBITDA
EBIT Net Income
2,703.5 2,991.7
1H 2016 1H 2017
3,025.8 3,338.0
1H 2016 1H 2017
1,970.8 2,219.9
1H 2016 1H 2017
+11% +13%
6,677.1 7,476.0
1H 2016 1H 2017
+12%
+10%
Financial Performance
3 Unaudited First Half ending June 30
In PhP millions 1H 2016 1H 2017 Growth
Net Sales 6,677.1 7,476.0 12%
Cost of Goods Sold 3,263.6 3,868.9 19%
Gross Profit 3,413.5 3,607.1 6%
Operating Expense 589.6 707.5 20%
Income from Operations 2,824.0 2,899.6 3%
Finance Costs – net (156.3) (127.5) 18%
Other Income/(Loss) – net (120.4) 92.1 176%
Income before Income Tax 2,547.3 2,864.2 12%
Provision in Income Tax 576.5 644.4 12%
Net Income 1,970.8 2,219.9 13%
Balance Sheet Position
Total Assets Total Liabilities Total Equity
27,568.8
40,155.1
2016 30-Jun-17
9,342.9 12,803.8
2016 30-Jun-17
18,225.9
27,351.3
2016 30-Jun-17
31 Dec 2016 30 Jun 2017
Current Ratio (x) 3.34 5.79
Financial Debt to Equity (x) 0.33 0.32
Debt to Equity (x) 0.51 0.47
Financial Covenant on DE 2.5x
+46%
+37%
+50%
4 in PhP millions; Unaudited First Half ending June 30
In PhP millions
Balance Sheet Position
In PhP millions 31 Dec 2016 30 Jun 2017
Cash and cash equivalent 6,620.9 16,994.8
Financial assets at FVPL - 222.2
Trade and other receivables 484.9 480.6
Inventories 1,374.0 1,606.2
Other current assets 729.0 932.3
Current Assets 9,208.8 20,236.1
AFS financial assets 181.0 181.7
Property, plant and equipment 15,774.0 17,764.8
Investment properties 577.8 577.8
Intangible assets and others 1,827.2 1,394.7
Noncurrent Assets 18,360.0 19,919.0
Total Assets 27,568.8 40,155.1
5 Unaudited First Half ending June 30, 2017
Balance Sheet Position
6 Unaudited First Half ending June 30, 2017
In PhP millions 31 Dec 2016 30 Jun 2017
Trade and other payables 2,348.3 3,030.6
Current portion of loans payable
- 166.0
Income tax payable 411.7 299.3
Current Liabilities 2,760.0 3,495.9
Loans payable* 5,957.1 8,672.7
Net retirement benefits 29.6 36.8
Provision for mine rehab 26.1 26.7
Net deferred tax liabilities 570.1 571.6
Noncurrent Liabilities 6,582.9 9,307.9
Total Liabilities 9,342.9 12,803.8
*Net of current portion**Net of 5 Treasury shares
In PhP millions 31 Dec 2016 30 Jun 2017
Capital Stock 7,500.0 8,000.0
Additional Paid-in Capital
6,494.9
Retained Earnings
Appropriated 3,500.0 3,500.0
Unappropriated 5,961.7 8,091.6
Other equity reserves 1,264.1 1,264.8
Total Equity** 18,225.9 27,351.3
In PhP millions 31 Dec 2016 30 Jun 2017
Total Liabilities and Equity 27,568.8 40,155.1
KEY FINANCIAL HIGHLIGHTS
7 Unaudited First Half ending June 30, 2017
For the six months ended June 30, 2017• Net Sales increased by 12% to PhP7.5 billion from PhP6.7 billion due to
higher sales volume partly offset by lower prices• EBITDA increased by 10% to PhP3.4 billion from PhP3.0 billion• EBIT increased by 11% to PhP3.0 billion from PhP2.7 billion• Net Income increased by 13% to PhP2.2 billion from PhP2.0 billion.
Without IPO expenses, net income increased by 15% to PhP2.3 billionTranslating to healthy margins• Gross Profit Margin is at 48%• EBITDA Margin maintained at 45%• EBIT Margin maintained at 40%• Net Income Margin maintained at 30%• Current ratio at 5.79x with cash at PhP17.0 billion• Financial debt to equity is at 0.32x
Recent Developments
Line 3 in Bulacan
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Target Completion Date
1Q2018 (ON TRACK)
Capacity 2.0 million metric tons of annual capacity
Cebu Cement Plant (Line 4) Target Completion Date
Year 2020To start construction in 4Q2017(ON TRACK)
Capacity 2.0 million metric tons of annual capacity
Market Coverage
Visayas and Mindanao region
Plans and Strategies
Eagle’s Annual Cement Capacity (million metric tons)
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3.1
5.1 5.1
7.1 7.1
9.1
2015 2016 2017 2018 2019 2020
✓ Increase integrated production capacity and expand distribution channels in key growth regions in the country
✓ Ensure sustainability and proximity of raw material sources
✓ Enhance customer and product value proposition
✓ Maintain price competitiveness
Line 3 completion
Cebu Plant (Line 4) completion
Line 2 completion
Plans and Strategies
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With the completion of Line 3 (1Q2018) and the Cebu Plant (2020), Eagle will have a cement capacityof 9.1 Million MT or about 230 Million cement bags
Existing Market Coverage
1st Market Expansion (2018)
2nd Market Expansion (2020)
Bulacan Plant
Limay Plant
Palawan
Western Visayas
Bicol
Cebu Plant
CaviteParañaque
Existing Manufacturing Plants
Existing Distribution Centers
Expansion Manufacturing Plants
Expansion Distribution Centersand Marine Terminals
Luzon
Mindanao Northern Mindanao
Central Visayas
Visayas
End of PresentationThank you
