May 19, 2020
RHI Trims Six-Month Net Loss
MANILA, PHILIPPINES – Integrated sugar and bioethanol producer Roxas Holdings, Inc. (PSEi: ROX) (RHI) today reported a net loss of PhP92 million for the six-month period ended March 31, 2020 compared with a net loss of PhP364 million in the same period last year despite continuing industry and market challenges.
Chairman Pedro E. Roxas said that, “RHI’s sugar operations were significantly affected by the drop in cane supply due to unfavorable weather conditions, the eruption of Taal Volcano in January and increased cane competition in the Batangas area. On the other hand, the Group’s milling operations in Negros fared better with a 7% increase in raw sugar production compared to the previous year.”
President and CEO Hubert D. Tubio noted that RHI is focused on crafting a roadmap for interventions that would increase the annual output for the sweetener.
Meanwhile, Mr. Tubio stated that the profit of RHI’s bioethanol segment decreased as feedstock costs soared during the first half of the crop year. “The high price of molasses affected the ethanol segment’s operations, resulting in lower production volume,” Mr. Tubio said.
However, the President and CEO said that the ethanol group is also exploring the commercial production of ethyl alcohol to help in the fight against the corona virus 2019 (COVID19) pandemic. RHI, principally through the PLDT/Smart Foundation, has contributed more than 90,000 liters of ethyl alcohol to various government units and other groups since March as the country intensified its fight against COVID19.
Executive Vice President and Chief Finance Officer Celso T. Dimarucut said the Group is focused on its thrust to de-risk the business. “Despite the many challenges we face, especially with the onslaught of COVID19, RHI has continued to manage its cashflow to ensure continuous manufacturing operations and is exploring all opportunities to reduce debt,” Mr. Dimarucut stated.
RHI is listed on the Philippine Stock Exchange (PSEi: ROX). Further information can be obtained by visiting the web at www.roxasholdings.com.ph