By James A. Loyola
Integrated sugar and ethanol producer Roxas Holdings, Inc. (RHI) incurred a net loss of P364 million for the six months ended March 31, 2019 from a net income of P80 million in the same period last year as several challenges affected its operations.
In a statement, RHI Chairman Pedro E. Roxas noted that a substantial drop in farm productivity, particularly in Batangas, caused the Group’s performance to slide during the period.
“The level of farm productivity suffered due to changes in weather patterns, which slowed down the growth of sugar canes,” Roxas said.
RHI President Hubert D. Tubio said weather conditions seriously affected business operations, on top of other operational problems that complicated the situation during the six-month period.
“Our Batangas sugar mill, Central Azucarera Don Pedro, Inc. (CADPI), only milled for 15 weeks instead of 23 in the previous year due to the pronounced lack of sugarcane,” Tubio explained.
He added, “We also faced stiff competition for canes at our Negros sugar mill, Central Azucarera de la Carlota, Inc. (CACI), which led to a shortened operating period and lower production volume than expected.”
Meanwhile, the Group’s two ethanol plants: Roxol Bioenergy Corporation (RBC) and San Carlos Bioenergy, Inc. (SCBI) registered marked improvements in their efficiencies and yields due to enhancements implemented in previous seasons.
However, the high prices of molasses dented the profitability of RHI’s ethanol business.
RHI Chief Finance Officer Celso T. Dimarucut said the firm’s revenues from continuing operations for the past six months climbed from P2.1 billion last year to P5 billion, including P1.5 billion of revenues recognized due to the adoption of Philippine Financial Reporting Standard 15.