Sugar and ethanol producer Roxas Holdings, Inc. (RHI) reported a core net loss of P198 million for the first quarter of its fiscal year ending September 2023, slightly higher than its loss of P196 million for the same period last year.
In a disclosure to the Philippine Stock Exchange, RHI Chairman Pedro O. Roxas said “the Group usually shows a loss at the start of the fiscal year as there are very limited transactions for the period.”
“While San Carlos Bioenergy, Inc.’s (SCBI) distillery operations started to stabilize in this quarter, Central Azucarera Don Pedro, Inc. (CADPI)’s refinery undertook its annual repairs and maintenance activities in November, after completing a short extended run to service its customers for the period,” he added.
RHI President and CEO Celso T. Dimarucut said that, “while our first quarter core net loss was flat, gross profit improved at P32 million for the first quarter brought about by the higher production and sale of ethanol produced from the early start of SCBI’s operations and its more efficient operations, as well as, an increase in the sale of refined sugar by CADPI.”
He also highlighted the efforts that the Group had undertaken in the past to improve its bottom line and to be more resilient to changing market conditions.
“Despite the inherent challenges in the industry with the significant decrease in cane supply in Batangas and increased fuel costs over the years, the Group managed to de-risk the business as it completed its pivot to sugar refinery as a standalone business model in Batangas,” Dimarucut explained.
The Group expects that improvements in the bottom line shall be reported in succeeding periods as CADPI’s refinery is poised to restart operations in the second quarter.
It also continues its efforts to cut down on operating expenses and to potentially generate income from its unutilized land assets.