ROXAS Holdings Inc. (RHI) reported a net income of P4 million during the first quarter of its fiscal year ending in December, reversing losses of P197 million in the same period in 2018.
The listed sugar and bioethanol producer attributed the gains during the October-December period to the sale of assets held for investment, it told the stock exchange on Wednesday.
The return to profitability came despite a 32% decline in its revenues to P1.3 billion from P1.9 billion a year earlier, with sales of goods falling 42% to P893 million and sales of services dropping 1.3% to P406 million.
“The volume of sales for refined sugar in the first quarter was low versus last year, because of the decrease in refined sugar produced by the Group in the previous crop year. The average sales price of sugar also dropped during the period,” RHI Chairman Pedro E. Roxas said in the statement.
He said the performance of the mills during the period was down, echoing the overall lower performance of the sugar industry based on national sugar production and tons cane milled.
Hubert D. Tubio, RHI president and chief executive officer, said that the group’s alcohol segment declined because of the high cost of feedstock.
“The average molasses cost in the first quarter was 32% higher than the average price in the past year. The increase in the feedstock cost dented the segment’s contribution for the period,” he said.
Celso T. Dimarucut, RHI executive vice-president and chief finance officer, said the company moved to manage its loans.
“As part of our debt management plan, we used the proceeds from the sale of our investment to significantly reduce the amount of our long-term loans. This is in line with the Group’s thrust to de-risk the business,“ he said.
Shares in RHI rose up P0.08 or 5% to close at P1.68 each on Wednesday. — Jenina P. Ibañez
