Pryce Corporation Reported P713.68 Million in Net Income in Q12024, Up 39.50%

Pryce Corporation's (PPC) first-quarter 2024 net income increased by 39.50%, from P511.54 million in 1Q-2023 to P713.68 million in 1Q-2024. This growth is mostly driven by higher Liquefied Petroleum Gas (LPG) margins, particularly in the Luzon market.

However, revenues in the first quarter of 2024 fell by 9.50%, from P5.18 billion to P4.69 billion, due to: (1) a 10.50% drop in the average Contract Price (CP), from US$708.17 per MT (1Q-2023) to US$633.67 per MT (1Q-2024); and (2) a fall in sales volume. The decline in the CP has the impact of lowering domestic LPG costs; however, the decrease in sales volume is driven by the market returning to pre-pandemic out-of-home usage levels, as Pryce is primarily a residential retail industry. Household consumers returned to restaurants and other business places following the COVID-19 pandemic.

The sales volume of industrial gases climbed by 14.7%.

PPC's LPG business segment generates P4.4 billion, or 93.71% of consolidated revenues. The other business segments contribute as follows: industrial gases P204.22 million (4.35%), real estate P76.26 million (1.63%), and medicines P14.58 million (0.31%).

Operating expenses increased by 10.21%, from P677.80 million in 1Q-2023 to P747.03 million in 1Q-2024, owing to inflation and increases in salary, logistical costs, and gasoline prices.

PPC's earnings per share increased by 40.4% in 1Q-2024, from 0.25 to 0.35.

Pryce Corporation or PC (formerly Pryce Properties Corporation) is a property holding and real estate development company incorporated on September 7, 1989. It has two subsidiaries: Pryce Gases, Inc. (PGI) and Pryce Pharmaceuticals, Inc. (PPhI). PGI's business is in the importation and distribution of liquefied petroleum gas (LPG) as well as the manufacturing and marketing of industrial gases. PPhI is a wholesaler and distributor of private branded multi-vitamins and some 'over-the-counter' generic drugs; it is a new subsidiary wherein PC bought 75% of common shares in July 2015.