MANILA, Philippines - Filipino-owned chemical distributor SBS Philippines Corp. reported a net income of P110.39 million in the first nine months of the year, almost double the P55.52 million earned in the same period last year.
The nine-month income already surpassed the company’s 2014 net income of P100.17 million.
SBS churned in sales of P695.2 million, up 7.5 percent, buoyed a 22 percent increase in sales of food ingredient products.
In the third quarter alone, core operating profit grew 15.4 percent to P66 million primarily due to a shift toward higher margin products.
However, stringent regulations on the sale and distribution of chemical substances considered as containing explosive ingredients and which serve as raw materials used for manufacturing resulted in a slowdown in sales in the third quarter, SBS said.
“Difficulties were experienced by both importers and end-users in securing new licenses and permits, plant inspections and escort transport needed to purchase, unload, move and possess such chemicals. Such unexpected disruptions in the supply chain resulted in lower sales in the third quarter which worked to curb the strong double-digit sales growth performance in the first half to a less stellar year-to-date sales growth of 7.5 percent,” SBS said.
SBS expects to continue to deliver solid profit and good operating profits through 2015 as it focuses on growing its operating margins and expanding and diversifying its product portfolio.
The company made its debut at the local bourse in August, successfully raising P1.15 billion through the sale of 420 million shares.
Proceeds of the IPO have been allocated for production expansion, capital expenditures, refinancing requirements and working capital.
The company is a major chemical supplier with a customer base of over 1,800. It supplies a wide range of chemicals and ingredient products and it services the requirements of major industrial and manufacturing businesses in the country for various needs such as cleaning and sanitation, food ingredients, chemical manufacturing, personal care, crop protection and animal care among others.