SBS Phl bullish on growth, charts expansion

MANILA, Philippines - Chemical distributor SBS Philippines Corp. is optimistic on its growth prospects this year as it plans to acquire allied chemical businesses and build two new warehouses that would be operational early 2017.

The company is on an expansion mode to cover other industries on the back of the sustained growth of the economy.

“The company is also expanding its sales coverage to additional industry segments such as water treatment, industrial and institutional cleaning and mining sectors as new target markets to develop. It is likewise improving on its product mix to provide for a more comprehensive industry coverage,” said Necisto Sytengco, SBS founder and chairman, during the company’s stockholders meeting.

“Our focus in the years ahead will be to increase our market share and build on our customer base for a sustainable, long term growth. This will involve improving our customer advocacy by giving them more value-added products and services, and developing more confidence in the quality of our products and services,” he added.

To support this growth plan, SBS is building two new warehouses.

“To support the sales revenue growth plan, SBS will add two new warehouses that will be operational by early 2017, bringing our combined warehousing space to over 60,000 square meters. This enhances the company’s ability to be the most effective industry channel and preferred partner-supplier of choice by the industries we serve,” said company president Gerry Tan.

He said the company expects revenue growth to accelerate over the next three years as it anticipates stronger demand for chemicals along with the continued growth of the economy.

The warehouses will be in Metro Manila and will be almost the same size of its existing five warehouses.

The company is also looking to pour in P300 million to acquire allied chemical businesses.

“There are four of the business development areas we would like to focus like water treatment, agriculture, pharmaceuticals and industrial, and institutional industries,” Tan said.

In the first quarter of the year, SBS posted a net income of P46.9 million, up 45.8 percent from P32.1 million in the same period in 2015.