August 09, 2018
RHI's nine-month revenues climb 13% to PhP9B but gross margin dropped due to higher production costs
MANILA, PHILIPPINES — Integrated sugar and bioethanol producer Roxas Holdings, Inc. (RHI) (PSEi: ROX) today disclosed that based on unaudited financial results, its nine-month revenues climbed 13% to PhP9 billion from PhP8 billion for the same period last year. “Despite the industry-wide drop in sugar production volume, RHI’s revenues for the period improved as RHI’s inventory at the beginning of the Crop Year compensated for the lower volume of sugar produced during the period,” Group Chairman Pedro E. Roxas said.
Meanwhile, the Group’s Net Income slid to PhP6 million from PhP175 million for the same period last year with the erosion in the sugar gross margin brought about by lower prices of sugar during the earlier period, lower production volume and higher production cost.
RHI President & CEO Hubert D. Tubio said the challenges that beset the sugar industry – primarily the unfavorable weather condition and the dwindling number of farmworkers – reduced RHI’s overall sugar production by 19%. Mr. Tubio added that the lower cane supply which resulted in lower volume of internally generated bagasse, coupled by a spike in the cost of outside fuel, brought cost of sugar production higher than that of the same period last year.
However, RHI’s ethanol business turned in higher revenues for the period on improved production efficiency even as the selling price of ethanol dropped slightly. During the year, the price of local ethanol is lower than the local retail price of
EVP/Chief Finance Officer Celso T. Dimarucut said that the Group is reaping the benefits of the improvements at the ethanol plants, which were started in previous periods and had increased the volume of alcohol produced at over 51 million liters.
This press release may contain some statements which constitute “forward-looking statements” that are subject to a number of risks and uncertainties that could affect RHI’s business and results of operations. Although RHI believes that expectations reflected in any forward-looking statements are reasonable, it cannot guarantee future performance, action
For further information, please contact:
Roulee Jane F. Calayag
Stakeholder Relations & Corporate Communications
(02) 771 7800-05
RHI is listed in the Philippine Stock Exchange (PSEi: ROX). Further information can be obtained by visiting the web at www.roxasholdings.com.ph