Pryce Corporation's Net Income for 9M24 Period Up By 40%

Pryce Corporation (PPC) attained an increase both in its consolidated revenues and net income for the first nine months of the year 2024. PPC’s net income went up by 40%, on this year’s P2.21 billion from last year’s P1.58 billion, while its consolidated revenues rose by 7% with this year’s P15.01 billion as compared to last year’s P14 billion.

​On contributions to consolidated revenues for the first nine-month period of 2024, the business segments of PPC are distributed as follows: LPG contributed P14.07 billion or 93.77%; industrial gases provided P665.51 million or 4.43%, revenues from memorial park operations pitched in an aggregate of P233.56 million or 1.56%; and pharmaceutical products at P36.48 million or 0.24%. Earnings per share rose by 42.6%, from last year’s P0.760 to this year’s P1.084.

PPC’s gross profit for the first nine-month period of 2024 also improved by 29.4%, or with this year’s P4.41 billion compared to last year’s P3.69 billion, despite the 2.78% increase in its cost of sales and services, or from P10.31 billion to P10.60 billion. PPC’s higher gross profit for the first nine months of 2024 can be attributed to the improvement of liquefied petroleum gas (“LPG”) margins in Luzon, brought by (1) the ongoing shift in revenues to sales of branded LPG from generic sales, and (2) the lower landed cost of LPG due to the renewal of supply contracts with improved terms.

PPC’s income from operations likewise went up by 23.32%, or to this year’s P2.64 billion from last year’s P2.14 billion, even with the corresponding increase in its operating expenses by 14.4%, or from last year’s P1.55 billion to this year’s P1.77 billion.

In its move to boost its industrial gases arm, PPC intensified the marketing of its industrial gas products, resulting in an increase in total sales volume by 27.4% year on year. This increase laid down a strong foundation for the commencement of PPC’s operation of its air separation facility in Mindanao after a one and a half-year construction period. With these developments, PPC foresees the potential of its industrial gas business to contribute substantial income in the succeeding periods. In addition, PPC’s industrial gas business enjoys lower operating and distribution costs, taking advantage of the shared logistical network established by the LPG business.