By JAMES A. LOYOLA
Integrated sugar and bioethanol producer Roxas Holdings, Inc. (RHI) reported a turnaround for the first quarter of its fiscal year ending September 2020 with a net income of ₱4 million from a net loss of ₱197 million for the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said this is primarily a result of gains recognized from the sale of certain assets held for investment.
Consolidated revenues for the period actually dropped 32 percent to ₱1.3 billion from the ₱1.9 billion revenues generated in the first quarter of the previous year.
“The volume of sales for refined sugar in the first quarter was low versus last year, because of the decrease in refined sugar produced by the Group in the previous crop year. The average sales price of sugar also dropped during the period,” said RHI Chairman Pedro E. Roxas.
He added that the performance of their mills in the first three months of the current crop year is down. This mirrors the overall performance of the sugar industry based on national sugar production and tons cane milled, compared to the previous crop year.
“The average molasses cost in the first quarter was 32 percent higher than the average price in the past year,” said RHI President Hubert D. Tubio.
He also noted that, the Group’s alcohol segment reeled from the high cost of feedstock. The increase in the feedstock cost dented the segment’s contribution for the period.
Meanwhile, RHI Executive Vice President and Chief Finance Officer Celso T. Dimarucut said that, “As part of our debt management plan, we used the proceeds from the sale of our investment to significantly reduce the amount of our long-term loans. This is in line with the Group’s thrust to de-risk the business.”