LISTED Crown Asia Chemicals Corp., maker of premium PVC compounds and pipes, said its net income last year grew by more than half led by strong exports and pipe sales.
Crown Asia vice president and comptroller Tita Villanueva told a press briefing that net profit in 2015 rose 53.18 percent from a year earlier to P100.15 million, while revenue jumped 26.6 percent last year to P1.07 billion.
The company said it has programmed a smaller capital expenditure this year because most of its investments have been completed last year, when actual capital spending amounted to P94 billion.
For its PVC compounds segment, sales increased by P114 million to P670.8 million in 2015 boosted by strong exports, which rose 53.19 percent to P376.19 million from P239.7 million in 2014.
Company president Eugene Villanueva said Crown Asia is optimistic that it will sustain its growth pace amid high consumer demand as well as its ongoing negotiations with water utilities for re-piping needs.
Sales from the pipe group grew 36.8 percent from a year earlier to P402 million as a result of consistent growth in the project sales segment, which posted sales of P258.35 million in 2015, accounting for 64 percent of total pipe sales.
The company made inroads in government projects via supply deals for the NAIA [Ninoy Aquino International Airport] Expressway Phases 1 and 2 and NHA [National Housing Authority] housing projects.
In January 2016, the compounds division received its new extruder line from Germany which added 1,500 metric tons per year (MTPY) to its current capacity of 15,000 MTPY. This equipment produces PVC compounds for bottles, IC tube packaging, films and sheets applications.
Villanueva said that in the compounds division, Crown Asia is leading the industry, having secured 50 to 60 percent of market share.
In addition, Crown Asia Chemicals launched its new Enduro pipe product line to serve the mid-cost and mass housing sectors.
The company noted that the housing backlog is estimated at 5 million units and is expected to grow continuously.