February 05, 2020
RHI Posts PhP4 Million Net Income in First Quarter
MANILA, PHILIPPINES – Integrated sugar and bioethanol producer Roxas Holdings, Inc. (PSEi: ROX) (RHI) today reported a net income of PhP4 million for the first quarter from a net loss of PhP197 million for the same period last year, primarily as a result of gains recognized from the sale of certain assets held for investment.
Consolidated revenues for the period, however, amounted to PhP1.3 billion, 32% lower than the PhP1.9 billion revenues for the first quarter in the previous year.
Chairman Pedro E. Roxas said that: “The volume of sales for refined sugar in the first quarter was low versus last year, because of the decrease in refined sugar produced by the Group in the previous crop year. The average sales price of sugar also dropped during the period.”
Mr. Roxas also added that the performance of the mills in the first three months of the current crop year is down. This mirrors the overall performance of the sugar industry based on national sugar production and tons cane milled, compared to the previous crop year.
President and CEO Hubert D. Tubio stated the Group’s alcohol segment also reeled from the high cost of feedstock. “The average molasses cost in the first quarter was 32% higher than the average price in the past year,” Mr. Tubio said. The increase in the feedstock cost dented the segment’s contribution for the period.
Meanwhile, Executive Vice President and Chief Finance Officer Celso T. Dimarucut reported that: “As part of our debt management plan, we used the proceeds from the sale of our investment to significantly reduce the amount of our long-term loans. This is in line with the Group’s thrust to de-risk the business. “
RHI is listed on the Philippine Stock Exchange (PSEi: ROX). Further information can be obtained by visiting the web at www.roxasholdings.com.ph