SBS Philippines Corp. posted a P234.3-million net income for the second quarter amid higher sales, turning around from a P20.8-million net loss in the prior quarter, it said in a market disclosure on Friday.
Net sales during the quarter rose 31% to P228.3 million from P174.1 million quarter on quarter.
However, SBS said its second-quarter net sales was 8% lower compared with the level in the same period last year.
It said the second-quarter net sales were a result of the growth in its pharmaceutical ingredient business and the gradual recovery of its feed ingredient and veterinary raw materials business. Despite the growth, SBS said industrial raw materials remained sluggish.
“Gross profit from core distribution business in the second quarter of 2021 increased by 6% compared to the same period last year. There has been improvement in gross margin by 3 percentage points as a result of active price management effort and improvement in the product mix, cushioning the decline in sales volume of industrial raw materials segment,” SBS said.
Consolidated operating profit for the second quarter improved 27% to P50.9 million from P40.2 million a year ago.
“The company continues to improve its operational efficiency and implement cost saving measures to reduce operating expenses while benefitting from its revenue diversification strategy that increases income stream apart from its core distribution business,” SBS said.
“As a result of the investment program of the group that aims to diversify sources of revenues, it registered P240.2 million on gain on sale of investment in a real estate subsidiary while posting equity in net losses of the associate companies in the amount of P33.9 million in second quarter of 2021,” it added.
For the first half, SBS posted a P213.4-million net income, a turnaround from the P13.7-million net loss it incurred in the same period a year ago.
In a separate disclosure, the company said that it plans to diversify its revenue streams by leveraging non-core real estate holdings across Metro Manila.
SBS said its board of directors has authorized the management to look for possible options and partnerships on the use of its three prime landholdings in Ayala Avenue, Makati City; another property along EDSA; and a third property along Alabang Zapote Road in Las Piñas City.
“This move is aligned with the company’s midterm diversification strategy to generate revenue streams from its investment properties. By developing these three properties with reputable partners in the real estate industry, SBS intends to take advantage of opportunities in the sector that will maximize share value for all its shareholders,” SBS Vice-Chairperson and Chief Financial Officer Aylene Y. Sytengco said.
On Friday, shares of SBS at the stock exchange dropped 0.46% or two centavos to end at P4.31 apiece. — Revin Mikhael D. Ochave