Pryce Corp. net income climbs 39.5% in first quarter

LISTED Pryce Corp. saw a 39.5% rise in its first-quarter net income to P713.68 million from P511.54 million in the same period last year, driven by higher profits from liquefied petroleum gas (LPG) in the Luzon market.

The company’s first-quarter revenue dropped by 9.5% to P4.69 billion from P5.18 billion last year, Pryce Cor p. said in a stock exchange disclosure on Wednesday.

Its LPG business segment took up P4.4 billion or 93.71% of the consolidated revenues, followed by industrial gases at 4.35% or P204.22 million, real estate at 1.63% or P76.26 million, and pharmaceuticals at 0.31% or P14.58 million.

The lower revenue was attributed to the 10.5% drop in the average contract price (CP) to $633.67 per metric ton (MT) in the first quarter from $708.17/MT last year as well as lower sales volume.

“The drop in the CP has a consequent effect of lowering domestic LPG prices, while the decrease in sales volume is caused by the return of the market to the pre-pandemic out-of-home consumption levels as Pryce is predominantly a household retail oriented business,” the company said.

“The household consumers returned to dine in restaurants and other commercial establishments post the occurrence of the coronavirus disease 2019 pandemic,” it added.

Industrial gases sales volume jumped by 14.7%.

Meanwhile, Pryce Corp. logged a 10.2% increase in operating expenses to P747.03 million from P677.8 million last year due to inflation and an increase in compensation, cost of logistics, and fuel.

The country’s inflation rate rose to 3.7% in March due to higher prices of food products.

On Wednesday, Pryce Corp. shares fell by 2.11% or 12 centavos to P5.57 apiece. — Revin Mikhael D. Ochave