Roxas Holdings, Inc. (RHI) reduced its net loss to P195 million in its first quarter ending December, as revenues increased.
The sugar and ethanol producer’s first quarter net loss attributable to equity holders of the parent was 18% lower than the P240 million loss in the October-December period in 2020.
RHI Chairman Pedro O. Roxas said the company usually shows a loss in the first quarter due to the “very limited transactions” during this period.
“While San Carlos Bioenergy, Inc.’s (SCBI) distillery operations started operating in the middle of October 2021, Central Azucarera Don Pedro, Inc. (CADPI) undertook its off-season repairs and maintenance activities in the first quarter. CADPI’s mill and refinery started operating in January 2022, aligned with the availability of sugarcanes in the region,” Mr. Roxas said.
RHI revenues doubled to P715.6 million in the October to December period, from P352 million in the previous year. However, the cost of sales also surged to P705 million from P340 million in the prior year.
RHI President and Chief Executive Officer Celso T. Dimarucut attributed the higher revenue to the sale of ethanol from the early start of SCBI’s operations, and remaining refined sugar inventory.
“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 trim its first quarter net loss as a result of decreases in operating expenses brought about by the implementation of right sizing initiatives and completing the term-out of the group’s short-term debts after paying off the previous long-term debts,” Mr. Dimarucut said.
Operating expenses dropped 28% to P125.46 million in the October to December period in 2021, from P173.822 million in the same period in 2020.
RHI said operations are expected to improve in the next quarters as “cane deliveries increase and the boiler conversion project for CADPI’s refinery operations is fully implemented.”
At the stock exchange Friday, RHI shares rose 8% or P0.08 to close at P1.08 apiece.
