Chemrez income up

Chemrez Technologies Inc. posted a 25-percent increase in its unaudited consolidated net income after tax to P329 million in the first six months of the year from year-ago level.

In a disclosure to the Philippine Stock Exchange, Chemrez attributed its strong performance to the decline in the cost of goods sold. The company was able to bring down its production costs by improving its efficiency, which translated to lower overhead costs, and by observing good timing in the purchase of raw materials it was using.

According to Chemrez, its net profit margin increased to 11.4 percent in 2011 from 8.8 percent in 2010 despite a 4-percent decline in consolidated sales, which reached P2.9 billion in the first half.

“This was due to the tight competition in the biodiesel market which is a result of oversupply,” Chemrez explained.

The company’s revenue mix remained at 60 percent oleochemicals, 35 percent resins and 5 percent powder coating.

Overall, the company believed it had been able to maintain a leading market share in the industries it is in.