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February 11, 2016

RHI posts 1Q2015 Net Loss of PhP125M

Operational challenges at two of its plants caused sugar group Roxas Holdings, Inc. (PSEi: ROX; RHI) to post net loss of PhP125 million from a profit of PhP9 million in the same period last year.
 
Group Chairman Pedro E. Roxas said that while historically, first quarter results are low, RHI reeled from the combined impact of insufficient cane supply, late startup in its Batangas plant and temporary shutdown for needed operational enhancements in its newly acquired plant.
 
RHI PCEO Hubert D. Tubio noted that the combined gross profit of Central Azucarera de la Carlota, Inc. (CACI) and Roxol Bioenergy Corporation (RBC) – both in La Carlota City in Negros Oriental --was not sufficient to carry the Group’s total expenses for the period.
 
He also noted that SCBI, which the Group acquired in May last year, had to cease temporarily its operations to give way for enhancement initiatives to improve plant efficiencies.
 
However, Mr. Tubio expects that the setback is temporary and that in the coming quarters, the Group’s performance will improve by yearend, resulting in an anticipated improvement in Core Net Income in the 2016 Crop Year versus last year.
 
“We hope to see an improvement in our full year Core Net Income,” Mr. Tubio said.
 
The RHI Group is currently rolling out improvements in all its plants, and has allocated a Capex Budget of about PhP1.4 billion for the current crop year to address operational challenges
 
During the meeting of the Board of Directors of RHI held yesterday, the Board approved a rights offering of common shares to be offered to the common shareholders of RHI (the “Stock Rights Offer”).  Determination of the final terms and conditions of the Stock Rights Offer will be announced once these are finalized.


Roxas Holdings, Inc. (RHI), a bio-sugar and bio-energy company, is the largest integrated sugar business in the Philippines. It manages sugar miller/refiner Central Azucarera Don Pedro, Inc. in Nasugbu, Batangas; sugar miller Central Azucarera de la Carlota, Inc.; ethanol producers Roxol Bioenergy Corporation in La Carlota, Negros Occidental and San Carlos Bioenergy, Inc. in San Carlos, Negros Occidental; and RHI Agri-business Development Corporation.

RHI is listed on the Philippine Stock Exchange (PSEi: ROX). Further information can be obtained by visiting the web at www.roxasholdings.com.ph