SBS Philippines Corporation (“SBS” or the “Group”), a leading chemical trading company, released its 2018 financial results for the twelve month period ended 31 December 2018.
2018 Consolidated Highlights:
- 2018 net sales amounted to P1.17 billion, up 6.6% compared to prior year
- Gross profit grew by 11.7% year on year, with gross margin from core distribution business up by 1.4 percentage points
- Equity net income of associates contributed P 97.5 million as result of investment program implemented since 2016.
- Realized net income of P 175.6 million in 2018 from P 101.3 million from prior year.
The Group reported consolidated net sales of PHP1.17 billion, marking a 6.6% increase year-over-year. Gross profit rose by 11.7%, while equity net income from associates reached PHP97.5 million. Net income climbed to PHP175.6 million, up from PHP101.3 million in 2017. Full-year earnings per share stood at PHP0.11, compared to PHP0.08 in the prior year.
Core Chemical Distribution Business
Sales from core chemical business grew by 6.3% to P1.106 billion from P1.039 billion in 2017 driven by higher volume sales of raw material ingredients for feeds, and industrial chemicals. The Company’s sales to the key product segments of feed, veterinary and agriculture inputs; Industrial raw materials; food ingredients; pharmaceutical and cosmetics products accounted for 35%, 27%, 27% and 11%, respectively, of 2018 sales revenues.
SBS Philippines Corporation recorded strong sales during the first half of 2018. However, competitive pressure in food ingredient products and a fourth-quarter slowdown in industrial activity impacted overall momentum. Nevertheless, gross profit climbed from PHP289.6 million in 2017 to PHP322.8 million in 2018. This growth stemmed from product portfolio rebalancing and improved sourcing strategies.
In response to evolving industry needs, the Group continues to roll out new products that offer better value and improve operational efficiency. Additionally, in 2018, SBS launched a range of waterproofing chemical materials to serve the fast-growing construction and infrastructure sectors. As a result, the company strengthened its position across multiple industries.
Property Related Investments
In 2018, the Group intensified its investments in property related assets and provides management services to its affiliates. Through its subsidiary, SBS Holdings, and several associate companies, the Group has built significant property assets strategically located in Metro Manila and nearby provinces, suitable for high-rise commercial and residential development.
The strategy of taking small ownership stake in companies investing in real properties allowed the Group to attain a more diversified interests in different property holdings at a lower capital requirement and risk exposure. This has started to deliver result, contributing to the Group P97.5 million of equity net income of the associate companies.
Cash Dividend
The SBS Board of Directors approved the declaration of regular cash dividend of PHP0.022 per share to all shareholders of record as of May 10, 2019, wherein the payment date shall be on May 22, 2019. The cash dividend payment shall be paid out of the Company’s unrestricted retained earnings as of December 31, 2018 in line with its dividend policy.
More information on SBS is available at the SBS website at www.sbsph.com.
