Manila, Philippines – SBS Philippines Corporation (“SBS” or the “Company”), one of the leading chemical distribution companies in the Philippines, reported a strong improvement in its second quarter 2026 financial performance, driven by higher sales across key market segments, improved pricing, a more favorable product mix, and continued gains in operating efficiency.
For the second quarter ended June 30, 2026, consolidated revenue reached P308.1 million, representing a 25% increase from P246.4 million in the same period last year. Operating profit doubled to P80.1 million, compared with P40.1 million in the second quarter of 2025, while consolidated net income increased significantly to P109.9 million, from P3.9 million in the comparable period.
Strong Revenue Growth Across Key Market Segments
The Company’s revenue growth was broad-based, with strong contributions from Food Ingredients, Animal Health and Nutrition, Home and Personal Care, and Environment and Infrastructure. The Industrial Raw Materials segment, however, remained subdued as overall manufacturing activity continued to face a challenging demand environment.
The improvement in revenue was supported not only by higher sales volumes but also by firmer pricing in selected product categories and a more favorable sales mix. The Company continued to benefit from the increasing contribution of higher-margin products, demonstrating the effectiveness of its strategy to focus on value-added chemical solutions and selected growth segments.
Significant Improvement in Margins and Operating Performance
Gross profit margin from the core chemical distribution business improved by 6.8 percentage points compared with the second quarter of 2025, reflecting the Company’s active price management initiatives and improved product mix.
This margin expansion, combined with continued operational efficiency, resulted in a 100% increase in consolidated operating profit to P80.1 million. Operating profit was also 20% higher than in the first quarter of 2026, reflecting continued improvement in the Company’s underlying business momentum.
The results demonstrate that the Company’s growth is not being driven solely by higher sales, but increasingly by better revenue quality, stronger margins, and operational efficiency.
Resilient Performance Despite Sluggish Manufacturing Demand
The overall manufacturing environment remained challenging during the first half of 2026, with customers continuing to exercise caution in inventory build-up and expansion plans amid elevated inflation, higher interest rates, increased logistics costs, and geopolitical uncertainties.
Despite these conditions, SBS continued to gain traction in its key markets. The Company’s efficient logistics network and disciplined inventory management enabled it to maintain product availability and reliable delivery to customers, allowing them to operate their businesses and production activities with minimal disruption.
This supply reliability has become an important competitive advantage for SBS, particularly in an environment where customers increasingly value continuity of supply and dependable service. The Company’s ability to maintain inventory availability while efficiently managing its supply chain has strengthened customer relationships and supported its continued expansion across key market segments.
Diversification Strategy Contributing to Shareholder Value
The Group’s investment and diversification strategy also contributed meaningfully to the quarter’s results. The Group recognized a net gain from equity in associate companies of P64.7 million in the second quarter of 2026, compared with an equity in net losses of P7.9 million in the same period last year.
As a result, consolidated net income reached P109.9 million for the quarter, of which P68.6 million was attributable to shareholders of the parent company.
For the first half of 2026, consolidated net income amounted to P122.1 million, a substantial improvement from P14.2 million in the first half of 2025.
The improved results reflect the benefits of the Group’s strategy of maintaining a strong core chemical distribution business while developing additional sources of income through its strategic investments. This diversification provides the Group with broader earnings opportunities and strengthens its ability to create long-term value for shareholders.
