Bilyonaryo - Business

Lucio Tan’s Victorias Milling sustains upward momentum, profit soars more than five-fold in first quarter fiscal year 2023

January 12, 2023

Bilyonaryo.com

Earnings of ultra bilyonaryo Lucio Tan’s Victorias Milling Co. Inc surged by over five times in the first quarter of its fiscal year ending August this year, driven by higher revenue as a result of increased production and volume sold.

Leading sugar producer saw its net profit rise to P772.7 million from September to November 2022 from only P141.32 million in the same period in 2021.

Its net profit margin doubled from seven percent to 14 percent.

Consolidated revenues more than doubled to P5.49 billion from P2.04 billion the previous year.

Sale of goods comprised the majority of VMC’s revenue for the quarter amounting to P4 billion while the rest came from service income.

VMC attributed the significant jump in its consolidated revenue to higher production level due to the early start of milling, higher volume of refined sugar sold due to increased demand, and higher volume of raw sugar tolled.

Also boosting its top line was the increased power export from the cogeneration plant and higher market prices for sugar and ethanol.

VMC said it incurred a significant increase in cane hauling and manufacturing costs by 36 percent and 20 percent, respectively, due to decline in provincial cane output that hiked competition and inflation.

Operating expenses grew by 32 percent year-on-year mainly due to higher selling costs.

Despite the industry challenges, VMC said its balance sheet remains strong.

“The group continues to invest on capital expenditure aimed to upgrade the plant and improve operational efficiencies and a few major projects are expected to be implemented within this crop year,” it said.

Related News Tags: Lucio Tan, sugar, Victorias Milling

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