CROWN ASIA Chemicals Corp. reported a net profit of P121.25 million in 2020, 11% lower than the P136.41 million generated in the previous year due to the impact of the coronavirus disease 2019 (COVID-19) on the company’s business.
According to the manufacturing company’s disclosure on Wednesday, revenues also declined by 22% to P1.12 billion from P1.43 billion in 2019.
The company did not disclose fourth quarter figures. Previous disclosures show that the company earned P45.43 million in the first quarter of 2020, P6.58 million in the second quarter, and P26.91 million in the third quarter.
Crown Asia operations had to be temporarily halted for two months in 2020, from March to May, due to the COVID-19 crisis.
The temporary cessation of operations resulted in a decrease in expenses for the year under salaries, wages, and utilities. Operating expenses declined by nearly 8% to P171.67 million from P186.34 million.
However, Crown Asia also said it spent on other operating costs as the company adjusted to continuing operations amid the pandemic.
“Additional operating expenses were incurred to ensure the health and safety of its employees and customers such as the frequent disinfection of facilities, giving of protective equipment such as face masks, face shields and alcohol, shuttle services and free lodging for employees residing outside Metro Manila,” Crown Asia said on Wednesday.
Crown Asia also said it had implemented flexible working arrangements for its employees, and adjusted work areas in order to observe physical distancing. It has since created a dedicated risks mitigation team, which covers finance, operations, sales, and marketing, to help with its operations.
“Based on the above actions and measures taken by management… it projects that the company would continue to report positive results of operations and would remain liquid to meet current obligation as it falls due,” the company said.
For 2020, the company’s total comprehensive income amounted to P127.68 million, declining by almost 36% from P198.52 million from a year ago.
“Management has not determined material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern,” Crown Asia said.
In a previous statement, the company said it would continue to supply materials for government infrastructure projects, which include the second phase of the North-South Railway Project, the Metro Manila Skyway Stage 3, and the development of the MRT-7.
Shares of Crown Asia at the stock exchange improved by 0.97% on Wednesday to close at P2.09 apiece from P2.07. — Keren Concepcion G. Valmonte