By Leslie D. Venzon
MANILA, Aug. 10 (PNA) — Newly-listed chemical trader and distributor SBS Philippines Corp. is embarking on an aggressive expansion program to achieve double-digit growth and surpass PhP 1-billion sales this year, riding on the country’s strong macroeconomic growth.
SBS President Necisto Sytengco said the company expects double-digit growth in revenues and earnings in 2015.
“With SBS business linked to the production sectors of the economy, it is strategically positioned to capture local market growth and access increasing chemical requirements of consumer high growth markets,” he told reporters after the listing ceremony at the Philippine Stock Exchange on Monday.
Sytengco said the company will use the PhP 1.15 billion in fresh funds raised through the IPO to expand its product offering, invest in capital expenditures, retire a term loan and fund working capital.
It will introduce additional products to enhance its product offerings, including newly developed materials that cater to the industry market trends in the food sector, he noted.
Sytengco said SBS’s primary business is related to food and nutrition, construction, chemicals and mining industries. It will also focus on population-driven industries such as the agri business, water treatment, pharmaceuticals, households and personal care.
The company will invest up to PhP 554.6 million of IPO proceeds for new warehouse and machineries and other equipment, as it expands its distribution network.
With the coming ASEAN economic integration, Sytengco bared that they are in talks with some multinationals and the local companies with presence in the region on possible supply agreement.
He believes that the regional integration will provide the company with “more room to expand” as competition gets tougher.
“In the Philippines, normally we have regional expansion already. For the Southeast, we are already in talks with some of multinationals and even the local companies who have their presence in those areas like Thailand, Vietnam, Malaysia, Indonesia,” Sytengco said.
“We are excited on the attractive growth prospects of SBS given the strong growth in manufacturing output and chemical consumption not only in the Philippines but in the Asian region as well,” he added.
The company supplies a diverse customer base of more than 1,800 clients with over 3,000 chemical products sourced from more than 500 suppliers.
SBS Philippines is the local bourse’s second initial public offering (IPO) listing this year after plastic compounds and pipes producer Crown Asia Chemicals. (PNA)