The country’s leading biodiesel, resins and oleochemicals producer Chemrez Technologies Inc. said on Thursday its net income grew almost a third last year on the back of a stronger performance by its high-margin products.
In a disclosure to the Philippine Stock Exchange, Chemrez said its net income reached P318 million in January to December 2013, or 30 percent higher than the year-earlier level.
Revenue hit P4.34 billion, or 12 percent higher than the previous year’s level.
Its oleochemicals business also posted robust gains, with volume up 66 percent year-on-year mainly on contributions from its new businesses. Biodiesel’s volume jumped 59 percent while non-biodiesel specialty oleochemicals surged 92 percent also by volume.
“Combined oleochemical revenues were higher by 21 percent year-on-year,” Chemrez said.
Taking into account the competitive marketplace as well as opportunities, the company said that it continues to focus on research and development to expand its higher-margin specialty chemical business—with 19 percent of its workforce dedicated to R&D and engineering activities.
“As a result, good progress has been achieved in emerging products categories, in particular the non-biodiesel, specialty oleochemicals,” the company said, adding that these “green” specialty oleochemicals are replacements for the petrochemical-based ingredients in personal care and home care products such as shampoos and liquid soaps.
The other half of Chemrez’ business, which mostly deals in consumer durables and building materials, also delivered positive revenue growth.
Chemrez attributed the solid performance to the 20-percent increase in exports, which comprised 21 percent of the company’s total revenue for the year. Exports mostly consisted of specialty chemicals used in paints and personal care products, the bulk of which are shipped within Southeast Asia.