Chemrez Technologies Inc., the country’s top biodiesel, resins and oleochemical producer, reported that its consolidated net income jumped 26 percent to P468 million last year from the P372 million registered in 2008 as sales grew despite the global economic crisis and the impact of strong typhoons in 2009.

The green technology innovator reported that its net profit margin improved to 9 percent from 8 percent in 2008 while earnings per share increased to P0.35 from P0.28 in 2008.

ChemrezTech said the higher profits came on the back of a 10 percent gain in consolidated sales to P5.1 billion in 2009 from the P4.66 reported in the previous year.

“This was due to higher sales volume, primarily the approval of the 2 percent biodiesel mandate, or B2, effective February 2009 and higher sales of other oleochemicals,” said ChemrezTech.

Though the company sold more biodiesel in 2009 than in 2008, profit margin for this product decreased substantially, due to intense competition.

Oleochemical products other than biodiesel, which are mostly exported, experienced robust growth and good prices, pushed by the high demand for amides and esters as used for the detergent, soap and cosmetic sectors in overseas markets.

ChemrezTech’s export sales rose 11 percent to P510 million last year from P460 million in 2008 – representing 10 percent of total sales for both 2009 and 2008.

For 2009, oleochemicals contributed 57 percent of sales while resins accounted for 39 percent, and powder coating for 4 percent. In 2008 it was 53 percent, 42 percent, and 5 percent respectively. This shows the robust growth in oleochemicals sales this year.

Gross profit surged 34 percent last year to P710 million from the P528 million in 2008 due mostly to lower raw material costs in 2009 compared to 2008.

On the other hand, operating expenses grew by a slower 28 percent to P162 million in 2009 from P126 million in 2008.

The increase in operating expenses was due mostly to an increase in marketing expenses like delivery charges and higher administrative expenses as a result of the higher biodiesel mandate.