Roxas Holdings trims losses to P434 million
Integrated sugar and bioethanol producer Roxas Holdings, Inc. reported a lower net loss of P434 million for the nine-month period ended on June 30 from P652 million in the same period last year.
In a disclosure to the Philippine Stock Exchange, RHI Chairman Pedro E. Roxas said the nine-month period was largely marked with the unexpected consequences of unforeseen events.
“RHI experienced the twin impacts of the eruption of Taal Volcano in Batangas and the global pandemic resulting from the Corona Virus Disease 2019 (COVID19) but the Group showed its resilience in facing these headwinds,” said Roxas.
He added that, “While the Group’s sugar segment, particularly, Central Azucarera de la Carlota, Inc. registered gains from the increased sales of raw sugar, this is significantly tempered by the losses from the ethanol unit.
RHI President and CEO Hubert D. Tubio said that, overall, the alcohol segment reeled from high feedstock (molasses) cost resulting in marked decline in gross profit.
This was further compounded by lower production volume as a result of the decreased demand for ethanol due to the imposition of lockdowns.
He, however, added that despite the heightened challenges brought by the global pandemic, RHI and its subsidiaries managed to lower its operating expenses while actively responding to the demands of the time.
RHI will continue to bolster its competitiveness and focus on its strength as we chart new territories,” Mr. Tubio said, noting that the Philippine sugar output for the crop year beat forecast. “The favorable weather conditions in the current year has bolstered sugar output in the country,” he said.
According to Executive Vice President and Chief Finance Officer Celso T. Dimarucut, the Group’s efforts in continuously looking for opportunities to reduce its debts are progressing.
“RHI earlier announced that Universal Robina Corporation is interested to acquire our assets in La Carlota City, Negros Occidental. We hope that this transaction for our sugar mill Central Azucarera de la Carlota, Inc. and ethanol facility Roxol Bioenergy Corporation will be completed at the soonest time,” Dimarucut said. He added that proceeds from the asset sale would be used to trim RHI’s debt levels.