Crown Asia Chemicals Corp. saw its net income double in the first semester of 2015 on the
back of improved pipes and compounds businesses.
The Villanueva family-owned and led firm said its profit soared by 142 percent to P41.28 million from P17.04 million, as its consolidated revenue impro ved by 26.2 percent to P499.27 million from P395.62 million.
In the second quarter, Crown Asia’s net income nearly tripled to P24.09 million from P8.29 million as its revenues gained 41 percent to P262.4 million from P184.9 million a year earlier.
Compounds sales advanced by 26 percent to P316.73 million from P251 million, while revenues from the pipes segment grew by 26.22 percent to P182.54 million from P144.62 million.
“The perceived better value of our premium PVC [polyvinyl chloride]compounds have helped us earn the trust of our customers. We are happy with the demand that we have been receiving for our products,” Eugene Lee Villanueva, Crown Asia’s president and Compounds Group general manager, said.
Derrick Villanueva, general manager of the Pipes Division, said: “Our proven track record in the industry has made us a preferred choice as we have gained headway into government infrastructure projects, including among others the NAIA [Ninoy Aquino International Airport], the NAIA expressway, NHA [National Housing Authority] projects as well as several horizontal developments with 8990 Luzon Housing Development Corp.”
Operating expenses, on the other hand, increased by 21.36 percent to P380.78 million from P313.75 million.
For the rest of the year, the company sees higher sales and profit driven by its new products—PPR (polypropylene random copolymer) and HDPE (high-density polyethylene) pipes and fittings—which will start production in its newly-built plant and warehouse in Guiguinto, Bulacan where most of its initial public offering proceeds were used.
“We are optimistic about sustaining our growth trajectory with the roll out of our PPR and HDPE operations. The level of interest in the market for our new products and the initial reception we have received has been very encouraging,” Walter H. Villanueva, chairman of Crown Asia, said.
The company has set aside P175 million in capital expenditures (capex) for 2015, which is higher than its P63.4 million spending last year. The capex is mostly sourced from the funds raised from its P222 million initial public offering (IPO), having P203.98-million net proceeds after listing-related expenses and taxes.
Crown Asia is a plastics compound and pipes producer owned by the Villanueva and Perez families based in Guiguinto, Bulacan. It manufactures and sells plastic chemicals and compounds, as we l as synthetic resins for making construction materials such as tubes and pipes.
The company is competing with Neltex, Moldex, Emerald and Atlanta in the pipes manufac turing space, while D&L Industries Inc. and Elastobest Manufacturing Corp. are some of its competitors in the specialty plastics, chemicals and compounds segment.
The company is the first to debut at the PSE this year, and is listed at the Main Board. The PSE expects nine or ten market debuts for 2015.