Crown Asia profit grows 2% to P229M

 Crown Asia profit grows 2% to P229M

Crown Asia Chemicals Corp. reported a 2.1% growth in net income to P228.9 million for 2022 as the listed plastic pipes maker generated higher revenues while operating costs increased.

In a disclosure on Wednesday, the company said revenues rose by 1.2% to P1.76 billion from P1.74 billion in the previous year.

“Both earnings and revenues edged higher,” it said, adding that these were “partly affected by more robust credit evaluation, partly affected by the higher operating costs.”

Crown Asia has four main business segments, which are compounds, pipes, polypropylene random (PPR)/high-density polyethylene (HDPE), and roofing.

In 2021, its management decided to further break down the pipes segment into pipes and PPR/HDPE, creating a new business segment.

Pipes contributed the bulk of the company’s revenues at about 52% or P915.34 million while compounds accounted for 35.3% or P621.55 million. The rest came from PPR/HDPE at 10.9% or P191.15 million, and roofing at 1.9% or P31.78 million.

Meanwhile, the company plans to acquire new properties and machinery as it aims to increase storage and production capacity.

Crown Asia is the supplier of piping for the Metro Manila Subway project, North-South Commuter Railway, Skyway 3 extension, Cavite-Batangas expressways, Wawa dam, and other infrastructure projects.

The company said it “looks forward to a better 2023 with the recovery of construction activities and infrastructure expenditures, both public and private.” It cited the current administration’s support for public-private partnerships and the previous one’s “Build, Build, Build” program.

On the stock market on Wednesday, Crown Asia shares remained unchanged at P1.59 apiece. — Adrian H. Halili