RHI Incurs First-Half Net Loss of PhP364M for Six Months Ended 31 Mar 2019
Integrated sugar and ethanol producer Roxas Holdings, Inc. (PSE: ROX) (RHI) reported that it incurred a net loss of PhP364 million for the six months ended 31 March 2019 from a net income of PhP80 million in the same period last year as several challenges affected its operations.
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,” Mr Roxas said.
RHI President and CEO 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. 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,” Mr. Tubio explained.
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.
Executive Vice President and Chief Finance Officer Celso T. Dimarucut said RHI’s revenues from continuing operations for the past six months climbed from PhP2.1 billion last year to PhP5.0 billion, including PhP1.5 billion of revenues recognized due to the adoption of Philippine Financial Reporting Standard 15, “Revenue Recognition”.
Mr. Dimarucut noted that despite the significant increase in revenues, the Group incurred a loss due to higher manufacturing unit cost and higher finance costs.
“We are currently focused on addressing the many challenges and issues causing volatility and higher costs in our industry and our Company. We will continue the ongoing efforts to Roxas Holdings, Inc. 14th Floor Net One Center, 26th Street corner 3rd Avenue, Bonifacio Global City, Taguig, Metro Manila 1634 Philippines Tel. Nos.: (63 2) 771 7800 to 05 Website: www.roxasholdings.com.ph reduce our debts to provide resiliency in the face of the significant changes presently taking place in market dynamics and environmental conditions,” he said.
