Local Jardine Matheson unit expects 5% sales growth
Jardine Distribution Inc., a member of the Hong Kong-based Jardine Matheson Group, sees local sales revenue growing by only 5 percent this year, from P1.5 billion a year ago, due to an expected decline in the sales of some agro-related products.
Edwin H. Hernandez, president and general manager of Jardine Distribution, said in a briefing the company might no longer meet its target revenue growth of 10 percent as the decline in snail infestations in the country resulted in the softening of demand for the company’s crop protection product lines.
Jardine is a wholesale distributor of agricultural and applied construction chemicals. Its crop protection range, which account for about 60 percent of the company’s local business, includes insecticides, molluscicides, herbicides, fungicides and hybrid seeds for use in a wide range of agricultural crops. The applied construction chemical product range includes wood preservatives, soil termiticides, waterproofing, cement add mixtures and various household pests control products.
According to Hernandez, the company expects increases in revenue in the coming years with the expansion of its product lines and distribution network for the home pest solutions. The company also expands distribution channels to include supermarkets, groceries and pharmacies.
The company’s home pest solutions include the Klerat Single Feed Rodenticide, Optigard Roach and Ant Bait and ZAP aerosol insecticide, which comes in multi-insect, cockroach and mosquito killer variants.
Peachy C. Tiu, marketing manager for the construction supplies group of Jardine Distribution, admitted that the market for home pest solutions remained small. Based on estimates, the local aerosol insecticide market was just about P2 billion; P500 million for rodenticides, and P50 million for roach baits.
According to Tiu, the company plans to grow these markets by conducting more educational and information campaigns with farmers, hotel and restaurant owners to raise the awareness on the need for such products.
The Philippines reportedly lags in the per capita use of these products compared to its regional neighbors.
In the meantime, Hernandez said the company would also be introducing hybrid vegetable seeds as Jardine Distribution targets to further increase market share and sales. To be launched also are specialty fertilizers for high value crops like tomatoes and cucumbers. Amy R. Remo
