MANILA, Philippines – Another legacy manufacturing firm is in financial trouble.
Lepanto Ceramics Inc., a top manufacturer of ceramic floor and wall tiles under the brand Lepanto Tiles, filed a petition for rehabilitation before the Regional Trial Court of Calamba last week.
In a disclosure to the stock exchange on Monday, Dec. 26, 2011, one of Lepanto’s investors, Prime Orion Philippines Inc., said Lepanto cited the rehabilitation aims to arrest the Laguna-based firm’s continuing losses for the past several years, ensure the continuing delivery of suppliers, give the company the change to rebuild its business by utilizing its cash flow directly for operations and service the obligations with creditors.
Lepanto Ceramics ended the fiscal year ending June with a net loss of P51 million from P50 million in 2010, which was 2% higher than the previous year, excluding gain on settlement of debt. Net sales dropped by 7% as sales volume declines, cushioned by the increase in sales price.
While the focus will remain on pushing the higher margin rustic products, Lepanto Ceramics said the company and its exclusive marketing partner Orion Maxis Inc., a subsidiary of Prime Orion, will have to run a tighter production and sales operations.
“The focus will now be on more efficient production runs (reduced wastages, better formulation, managed overheads) and growing the business with key retail partners,” the company said in a regulatory filing.
Lepanto has a manufacturing plant on a 14.3 hectare company-owned property within the industrial zone of Calamba, Laguna. – Rappler.com