Bilyonaryo - Business

Roxas Holdings expects to bounce back after higher Q1 loss

February 2, 2023

Bilyonaryo.com

Sugar and ethanol producer Roxas Holdings Inc. (RHI) is looking past its first quarter loss, saying business is primed for an upturn with the expected resumption of operations of its refinery.

RHI reported a core net loss of P195.9 million in the first quarter of its fiscal year (October to December 2022), slightly higher than the P194.92 million loss incurred in the same period a year ago.

Revenues from contracts with customers grew more than five-fold to P4.18 million while gross income more tripled to P31.68 million due to higher production and higher sale of refined sugar and ethanol.

From other loss of P1.65 million, RHI booked other income of P3.5 million.

RHI chairman Pedro O. Roxas said “the group usually shows a loss at the start of the fiscal year as there are very limited transactions for the period.”

“While San Carlos Bioenergy Inc.’s distillery operations started to stabilize in this quarter, Central Azucarera Don Pedro Inc. (CADPI)’s refinery undertook its annual repairs and maintenance activities in November, after completing a short extended run to service its customers for the period,” Roxas said.

RHI president and CEO Celso T. Dimarucut, nevertheless, expects the company to improve its financial position as CADPI’s refinery is set to restart operations in the second quarter.

Dimarucut also highlighted the efforts that the group had undertaken in the past to improve its bottom line and to be more resilient to changing market conditions.

“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 de-risk the business as it completed its pivot to sugar refinery as a standalone business model in Batangas,”he said.

Apart from this, RHI continues to cut down on operating expenses as well as generate income from its unutilized land assets.

Related News Tags: business, refinery, Roxas Holdings

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