- Category: Companies
- Published on Wednesday, 14 November 2012 19:32
- Written by Paul Anthony A. Isla / Reporter
TIGHT market competition in the oleochemicals sector has dragged Chemrez Technologies Inc.’s net income to dip by about 38 percent to P224.41 million in the first nine months of the year from P364.37 million during the same period last year.
In its financial report to the Philippine Stock Exchange, Chemrez said sales revenues during the period was 28-percent lower at P2.9 billion from P4 billion in the same period last year.
Chemrez said oleochemicals sales dropped to P1.2 billion from P2.3 billion a year ago due to tight market competition, resin sales also dipped by P66 million to P1.4 billion from P1.5 billion, while powder coating sales inched up to P252 million from P220 million due to an increase in prices.
Export sales, which account for 19 percent of total sales, were 29-percent lower at P542 million from P763 million.
Chemrez said it remains on track of targets for the year following the improved third-quarter financial results.
For the third quarter alone, Chemrez said net income incurred amounted to P60.21 million from P37.81 million during the same period last year.
In the first and second quarters, the company recorded lower profits at P119.97 million and P44.23 million, respectively.
Chemrez added that the cost of goods sold for the period was P2.5 billion and 28-percent lower than the P3.5 billion reported last year due to lower sales volumes.
Gross profit of P382 million was 28-percent lower than the P532 million registered during the same period a year ago with the company citing lower oleochemical and resin products sales.
Chemrez said selling and marketing expenses at P52 million this year were lower by 9 percent from P57 million brought about by the P4-million drop in delivery expenses because of lower sales and a P2-million drop in advertising and promotions expenses due to the reclassification of prompt payment discounts previously classified as selling expenses to sales discounts.