Concreat Holdings bets on infra, housing

CONCREAT Holdings Philippines Inc. (CHP), formerly Cemex Holdings Philippines Inc., remained cautiously optimistic as it banks on medium-term infrastructure growth and an expanded production capacity for recovery.

Speaking at the company's first annual stockholders' meeting under the leadership of DMCI Holdings, CHP President and CEO Herbert Consunji acknowledged that market pressures will persist this year.

"The cement business is highly competitive and has global challenges ... can weigh down cost, price, and demand," he said. "But these headwinds are not new to DMCI ... What matters most is not the difficulty of the environment, but how we respond to it."

CHP is positioning itself for recovery with the completed expansion of its Solid Cement Plant in Antipolo, increasing its annual capacity by 26 percent to 7.2 million tons.

The reintroduction of Ordinary Portland Cement (OPC) to its product lineup also aims to capture large-scale infrastructure and commercial projects.

Consunji cited the country's housing backlog — projected to reach 10 million units by 2028 — as another potential demand driver. "There is significant room for growth. Cement consumption per capita in the Philippines remains well below regional averages," he said.

CHP ended 2024 with a P23.4-billion net loss, largely due to a one-time P19.6 billion goodwill revaluation tied to DMCI's acquisition of a controlling stake last December. Core net loss is at P3.7 billion, driven primarily by an 8-percent decline in cement prices and soft demand.

Despite the loss, CHP management framed the revaluation as a step toward "a cleaner balance sheet" and a more transparent reflection of the company's post-acquisition value, reassuring stakeholders that turning the company around is the goal over a three-year horizon."

Consunji said that a key pillar of that recovery strategy is internal demand generation from the broader DMCI Group, with CHP starting to supply cement to DMCI's housing and infrastructure projects.

"That is why this integration is so important. It brings together the two strong foundations: CHP's national footprint in cement, and DMCI's broad capabilities across construction, real estate, energy, mining, water services and logistics," he added.

"Together, we form a powerful combination — aligned not just in operations, but in vision, values and long-term goals. And while the short term may be challenging, we remain focused and cautiously optimistic about the future," Consunji said.

CHP shares on Monday rose 3 centavos, or 2.29 percent, to P1.34 apiece.