SBS PH Net Profit Declines

Chemical trader and distributor SBS Philippines Corp. reported a decrease in consolidated net profit in 2022 to P103.7 million, from P180.4 million in 2021.

Photo Insert: Operating profit went up by 89.30% to P292.90 million from P154.80 million due to higher sales volumes and price increases.

This was said to have been due to a one-time gain from the deconsolidation of a subsidiary in 2021. Consequently, the group registered a net finance expense of P87.4 million in 2022, from P124.3 million in 2021.

A P312.0 million gain had been recorded in 2021 for the transaction. Other operating income, meanwhile, fell by P19.9 million or 65.% to P10.7 million, caused by a decrease in various management services.

Operating profit went up by 89.30% to P292.90 million from P154.80 million due to higher sales volumes and price increases.

Consolidated finance costs amounted to P93.20 million, down 30% from P133.1 million, and mainly due to the recognition of a day-one loss after discounting certain receivables of a subsidiary. Sales revenue increased by 45.30% to P1.19 billion from P817.5 million.

Industrial chemical sales rose by 113.30% or P121.20 million while the food ingredients segment increased by 37.40% or P94.50 million. The growth was said to have been driven by an improvement in manufacturing activities and a continued increase in consumer demand.

Revenue from animal feeds increased by 4.70% or P12.10 million as the swine industry gradually recovered from the impact of an African Swine Flu outbreak. The cost of goods sold increased by 36.10% to P724 million from P531.90 million.

Gross profit, lastly, rose by 62.40% to P464.10 million from P285.90 million, consistent with the higher sales volume and complemented by an improvement in gross margin of 4.20 percentage points due to favorable product mix and rising prices.

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