Listed firm Pryce Corporation reported a surge in its gross profit for the first nine months of the year, driven by increased liquefied petroleum gas (LPG) margins in Luzon.
In a disclosure to the Philippine Stock Exchange, Pryce said that its branded LPG sales significantly outpaced those of its generic counterparts, contributing to the overall profit increase.
The company also said its new supply contracts allowed Pryce to secure liquified gas at more favorable prices, further bolstering its bottom line.
Net income jumped by 40 percent in January to September 2024 from P1.58 billion to P2.21 billion. Consolidated revenues also grew by seven percent from P14 billion to P15 billion.
Pryce reported that LPG generated P14.07 billion, accounting for nearly 94 percent of its total revenue.
Industrial gases contributed P665.5 million, while other segments, like memorial park operations and pharmaceutical products, brought in P233.56 million and P36.48 million, respectively.
Earnings per share spiked by 42.6 percent, from P0.760 last year to P1.084 by 2024.
Pryce’s income from its operations went from P2.14 billion to P2.64 billion, indicating a 23.32 percent increase. Its operating expenses were also up by 14.4 percent or P1.77 billion this year from its P1.55 billion.
The LPG firm said that it stepped up its marketing efforts which contributed to an increase in sales since last year.
“This increase laid down a strong foundation for the commencement of Pryce’s operation of its air separation facility in Mindanao after a one-and-a-half-year construction period. With these developments, Pryce foresees the potential of its industrial gas business to contribute substantial income in the succeeding periods,” it stated.
Moreover, Pryce benefits from the lower operating and distribution costs since it shares a logistics network established by the LPG enterprise.