May 06, 2022
RHI Continues to Reduce Reported Losses
MANILA, PHILIPPINES – Listed sugar and ethanol producer Roxas Holdings, Inc. (PSEi: ROX) (RHI) reported that the Group’s net loss for the six months ended 31 March 2022 was PhP496 million compared with a net loss of PhP574 million in the prior period.
Chairman Pedro E. Roxas stated that “while the Group’s revenues were higher last year, these gains were adversely affected by the contracted milling operations in Central Azucarera Don Pedro, Inc. (CADPI) resulting in lower tons canes milled, and the significantly higher fuel costs for the refinery operations.” Ethanol production of San Carlos Bioenergy, Inc. (SCBI) is ahead versus last year, due to an earlier start of operations.
CADPI’s milling operations were significantly hampered by the decline in the supply of sugarcanes, particularly in the Batangas area.
In January, the Department of Agriculture reported about PhP1.2 billion damages to sugarcane out of the total PhP12.7 billion damages to the agricultural industry brought about by Typhoon Odette (Rai) which hit the country late last year. Included in the hardest hit areas were the CALABARZON and Western Visayas regions where the RHI Group operates. Consequently, the Sugar Regulatory Administration (SRA) reported a decline in raw sugar production, by 7.9 percent in the third week of April. The SRA’s final crop estimate for the current crop year, which ends in August, is for a further drop to 1.982 million MT from their earlier estimate of 2.072 million MT as of January.
President and CEO, Mr. Celso T. Dimarucut, stated that “despite the challenges faced in the Batangas business particularly in the mill-side, the effect on CADPI’s gross profit was tempered by improved yields and higher refined sugar production coupled with an increase in tolling arrangements.” Likewise, he added that CADPI’s boiler conversion project, enabling the refinery to extend its period of operation, was completed in January 2022. The gains from this project, in terms of increase in refined sugar production, will become more apparent in subsequent quarters. “Moreover, the initiatives that were implemented in previous years, such as, manpower right-sizing and rationalization of loans, have resulted in decreases in operating expenses and interest expenses”, he further stated.
“Overall, RHI remain focused on implementing solutions to address the various factors causing volatility and higher costs in the industry and the Group.” Mr. Dimarucut said. ?
RHI is listed in the Philippine Stock Exchange (PSEi: ROX). Further information can be obtained by visiting the web at www.roxasholdings.com.ph