Roxas Holdings Inc. (RHI, PSE: ROX) has reported that based on its unaudited financial and operating results, its consolidated net loss from continuing operations for the first quarter increased to PhP109 million from a net loss of PhP90 million for the same period last year.
Chairman Pedro E. Roxas said that due to the cyclical nature of the business, the Group’s first quarter performance is historically slow as off-season repair and maintenance activities for the alcohol plants and the sugar refinery are done then, with only the sugar mill in Negros starting operations in September.
“We expect operations to start picking up in the next two quarters,” Roxas said. “We inaugurated last November 2018 the two anaerobic digesters (ADs) at San Carlos Bioenergy Inc. (SCBI). We anticipate to see the full benefits from these facilities in the succeeding quarters.”
President and CEO Hubert D. Tubio said the Group’s sugar business was also affected by the decline of sugar prices in reaction to the heightened calls of food firms for the government to allow the importation of sugar, and the lower yield primarily due to changing weather conditions.
“We had assumed that the price of raw sugar will hold during the first quarter, considering that it was the start of the milling season. However, sugar prices dropped significantly in December in reaction to the increasing clamor of food firms for the government to allow them to import sugar,” Tubio said. He also noted that the lower yield resulted from significant weather changes, which affected the quality of sugarcanes.
Executive Vice President and Chief Finance Officer Celso T. Dimarucut said the net loss from discontinued operations totaled PhP88 million. “The amount represents the results of operations of Central Azucarera Don Pedro Inc. (CADPI) which was classified as held for sale following the Group’s decision to sell the subsidiary’s assets to focus on its businesses in Negros,” Dimarucut said.