Listed agribusiness firm Calata Corp. registered a hefty fall on its first-half net income on the weight of the increase in its operating expenses as well as the decline in its sales during the period.
In its financial statement posted at the Philippine Stock Exchange on Thursday, Calata Corp. reported a 35.5-percent decline in its net income during the first six months of the year, earning only P38.2 million from the P59.2 million it earned in the same period last year.
“Net income decreased by P21.09 million, or 35.5 percent. The decrease is mainly due to the increase in operating expenses brought about by the consolidation of the operating expenses of the company’s retail stores,” the company said in its filing with the bourse.
Also, the agri firm’s profit before tax went down to P54.6 million from the P84.3 million it registered in the same period in 2012.
For the second quarter alone, Calata Corp. earned P19.2 million in net income, quite afar from the P31.5 million it earned in the same period last year.
Moreover, the sales of the company declined by 25.64 percent to P870.3 million, compared to the P1.2 billion it earned in the first half of 2012.
The decrease in sales, according to the company, was mainly due to its shift in focus to selling higher margin products.
“The shift in focus resulted in lower sales of the products with lower margin. The sales of the higher margin products have increased significantly and have even exceeded the company’s expectations, but it is still lower than the decrease in the low margin products,” Calata Corp. said.
During the six-month period, the group capitalized expenditures amounting to P255.6 million related to properties under construction.
These expenditures consist of pieces of farm equipment, materials, labor and overhead directly related to the construction of the assets, the company added.