December 16, 2020
RHI's 2020 Net Debt down by 54%
MANILA, PHILIPPINES – Sugar and ethanol producer Roxas Holdings, Inc. (RHI; PSEi: ROX) today reported the results of operations and financial position for the fiscal year ended 30 September 2020.
Net Debt at 30 September 2020 dropped significantly to PhP4.4 billion, from PhP9.8 billion last year, after the completion of the sale of its assets in La Carlota City.
Chairman Pedro E. Roxas said that the proceeds of the sale of its sugar mill and ethanol plant in La Carlota City, Negros Occidental and investment properties, consisting of shares in Najalin Agri-Ventures, Inc. (NAVI) in September 2020 were used to pay-off all the long-term loans of the Group. “The sale of these assets to significantly reduce our debt is part of our efforts to de-risk the business and focus on expanding our sugar refinery operations in Nasugbu, Batangas. This will also allow the Group to help our country minimize importation of refined sugar needed by beverage and food manufacturers,” Mr. Roxas added.
The refocusing of the business thrust of the Group, however, resulted to the recognition of non-recurring losses of PhP2.6 billion, mainly from the asset sale and goodwill impairment recognized at the end of the year. The Group reported a net loss of PhP3.8 billion for the fiscal year ended 30 September 2020 from a net loss of PhP1.9 billion for the same period last year.
RHI Officer-in-Charge and EVP/Chief Financial Officer Celso T. Dimarucut noted that before the non-recurring charges, overall growth was significantly tempered by the losses from the ethanol business unit. “The early shutdown of our alcohol plants due to the delays in lifting by oil companies and the steep rise in the cost of feedstock, tempered gains, which resulted in slim margins for the alcohol unit,” Mr. Dimarucut said.
“Our sugar operations in Batangas were likewise affected by the eruption of Taal Volcano last January coupled by the decline in available canes in the area, which also hampered production of refined sugar due to a limited supply of bagasse.
“Despite the prevailing uncertainties due to the pandemic, RHI is doing its best to fast track recovery and implement a wide-ranging transformation strategy to rebuild its sugar mill and refinery in Batangas, while boosting its alcohol business in Negros Occidental and strengthening its agri-business with more targeted programs to help farmers increase their yields,” said Mr. Dimarucut.
RHI is listed in the Philippine Stock Exchange (PSEi: ROX). Further information can be obtained by visiting the web at www.roxasholdings.com.ph