NEWLY listed chemicals and raw materials manufacturer SBS Philippines Corp. reported its net income more than doubled in the first semester of 2015 on the back of better sales in higher margin products.
Net income doubled to P75.2 million in January to June compared with the P33.7 million a last year earlier due to organic growth and efficient measures that lowered operating expenses, the company said in a statement.
Total sales climbed by 27.3 percent to P458.6 million from P360.2 million, while operating expenses reached P391.66 million from P296.94 million.
“The strong sales performance in the first half of 2015 was primarily driven by the food ingredients business which accounted for a significant portion of the sales increase and the balance by pharmaceutical, feeds, veterinary care and industrial products,” the firm said.
“The company benefitted from the increased chemical consumption by the manufacturing and production sectors driven by the strong domestic private consumption,” it added.
The firm listed on the stock exchange last August 7, and was nine times oversubscribed during its offer period from July 28 to August 3. From an initial offer price of P2.75 per share, SBS shares are trading at around P5 apiece as of Thursday.
“In the light of the continued economic development in the country and the Asean region, the chemical distribution business is seen to continue its strong growth and SBS will be in the forefront of this trend given its highly diversified product lines and customer base,” said Esmeraldo A. Tepace, SBS executive vice president and general manager.
“The remarkable results for the first half of 2015 show the company’s continuing healthy growth. The company expects to steadily benefit from this positive market development and continue with its accelerated organic growth,” he added.
With P458.6 million in first semester sales, the raw materials maker for the food industry is fairly on track to meet its 2015 target of growing its sales in double-digit terms to P1 billion.
The 2015 sales expansion is expected to be driven by the growth trends and opportunities the economy presents mostly in the food business which accounts for 30 percent of the company’s revenues.
The company imports most of its materials from over 500 suppliers in the United States, Europe, China, Japan and Southeast Asia, distributing 99 percent of its 3,000 product lines locally.
Tepace earlier said that the company is adding 100 more chemical products by end-2015 to its existing product lines. This is in line with the expansion and diversification effort post-initial public offering, which is focused on the food business.