Sugar firm Roxas Holdings Inc. reported a P124.83 million loss during its fiscal first quarter from a profit of P8.88 million last year as a result of low cane supply, while its plant in Batangas started late for the crop season.
The company said historically, its fiscal first-quarter performance, which starts in September and ends in December, has always been low. The cost of manufacturing was high during the period, and aggressive sourcing of cane supply made it necessary for the firm to give milling incentives.
It said consolidated revenues increased 29 percent during the period to P2.7 billion, from P1.17 billion in 2014, mainly coming from higher revenues from raw and refined sugar and alcohol.
Refined sugar contributed P544.77 million, or more than eight times higher than the previous year’s sales of P62.87 million. Raw sugar sales also rose 58 percent to P1.22 billion, from the previous P774.98 million.
Meanwhile, sales from alcohol climbed to P911.24 million for the period, or more than double the previous P338.75 million, spurred by additional sales amounting to P339 million in 2015 from newly acquired San Carlos Bioenergy Inc., the company said.
Hubert D. Tubio, the company’s president and CEO, said the combined gross profit of Central Azucarera de la Carlota Inc. and Roxol Bioenergy Corp., both in La Carlota City in Negros Oriental, was not sufficient to carry the group’s total expenses for the period.
Operating expenses rose to P240.53 million, 76 percent higher than the previous P135.93 million.
“We hope to see an improvement in our full-year core net income,” Tubio said in a statement.
The company said it has allocated a capital expenditure of P1.4 billion for the current crop year, which started last September.
The company’s board also approved a rights offering of common shares to be offered to the company’s common shareholders.
“Determination of the final terms and conditions of the stock rights offer will be announced once these are finalized,” the company said.
The company added that its Batangas operations, through Central Azucarera Don Pedro Inc. only started milling last November 26.
Raw sugar production for the period was 151,050 50-kilogram bags (Lkg), 88 percent higher than the 80,206 Lkg during the previous year, when crop output was low due to typhoons Lando and Nona, and also the one-week of continuous rain that brought monsoon rains in the Batangas area. On the other hand, raw production at Central Azucarera de la Carlota for the period dropped 4 percent to 1.54 million Lkg, from the previous 1.605 million Lkg due to lower cane quality.
Ethanol production of Roxol Bioenergy for the period also dropped 15 percent to 8.54 million liters, versus last year’s 10.01 million liters.
Alcohol yield increased 3 percent from 264 liters to 273 liters per ton of molasses, the company said.