A leading manufacturer is optimistic about achieving double-digit earnings growth this year, driven by stronger exports from its newly operational plant in Batangas.
During the company's annual stockholders' meeting on Monday, the President and CEO highlighted the strategic impact of the new Batangas facility. "With the new plant, we see new markets, higher value-added products, and deeper innovations that will further push our boundaries," the CEO stated.
The new plant, situated in a special economic zone in Batangas, came online last year and has already significantly boosted the company's export capabilities. In the first quarter, export revenue surged 39 percent year-on-year, now making up 32 percent of total revenues. The CEO expressed confidence in reaching the goal of exports accounting for at least 50 percent of total sales in the coming years.
"With the new capabilities and capacity that the Batangas plant brings, we reasonably expect to achieve our export goal, barring any unforeseen events," the CEO added. The plant exceeded its first-year export commitment to the Philippine Economic Zone Authority (PEZA) by 230 percent as of the end of March.
The CEO also emphasized the plant's strategic importance, noting its design allows for significant expansion with minimal additional cost, even with current utilization below 50 percent. This positions the company to meet increasing international market demand effectively.
Despite a 31-percent drop in net income to P2.3 billion in 2023, the company reported a 4-percent year-on-year increase in net income to P680 million for the first quarter of this year. The CEO affirmed, "We are on track to reach our big, hairy, audacious goal (BHAG) for exports. Our investments over the past years are paving the way for higher and more sustainable profit growth, making us a truly global manufacturing company."
Additionally, the company announced a cash dividend of P0.209 per share for 2023, payable to shareholders on record as of June 19, with payment set for July 3. Shares closed up 1.43 percent at P6.37 apiece on Monday, as the benchmark Philippine Stock Exchange index gained 0.59 percent.
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