IMI exits Czech Republic business

Integrated Micro-Electronics, Inc. (IMI)

MANILA, Philippines — Ayala-backed Integrated Micro-Electronics Inc. (IMI) will make a P635-million exit from its Czech Republic business in a bid to cut losses and return to profitability.

IMI said in a regulatory filing on Wednesday its wholly owned subsidiary, Cooperatief IMI Europe UA, had agreed to sell 100 percent of IMI Czech Republic to Keboda Deutschland GmbH and Co. KG, a unit of China-listed Keboda Technology Co. Ltd.

“This sale was executed as part of IMI’s restructuring and footprint rationalization program, which was initiated in the second half of 2024,” IMI said in its disclosure.

Consolidation

It added that its divestment would reduce overhead and administrative expenses. IMI will consolidate its Europe operations into its Bulgaria and Serbia facilities.

In the first quarter, IMI managed to reverse its $3.7-million net loss and end the period with a net profit of $3.3 million.

READ: Ayala’s IMI losses widen to $3.7M

IMI said it was able to reduce its overhead and selling, general and administrative expenses by 14 percent during the period, thus contributing to profitability.

IMI chair Alberto de Larrazabal earlier told reporters the Ayala Group was keen on keeping IMI, saying it would likely end the year with a net profit on the back of efforts to reduce costs and inventory levels.

READ: Ayala keen on keeping IMI