May 07, 2021
RHI incurs First-Half Net Loss of PhP574M
MANILA, PHILIPPINES – Listed sugar and ethanol producer Roxas Holdings, Inc. (PSEi: ROX) (RHI) reported that it incurred a net loss of PhP574 million for the six months ended 31 March 2021 compared with a prior period net loss of PhP563 million, before accounting for a gain on sale of investments of Php258 million.
Chairman Pedro E. Roxas noted that there had been a substantial drop in sugarcane yields despite an increase in tons cane milled, particularly in Batangas, which negated gains and improvements in the Group’s operations during the period.
“The adverse effects of a prolonged La Niña were felt on the level of farm productivity which slowed the growth of sugar canes,” Mr. Roxas said. “The overall decline in cane quality (sugar content of canes) is a concern for the entire sugar industry, so much so, that the Philippine Sugar Regulatory Administration has intervened and suspended the US Quota for exports in early April,” he added.
RHI President and CEO Mr. Celso T. Dimarucut added that the unpredictable weather conditions seriously affected business operations in the past two quarters. “The onslaught of heavy rains caused a delay in the harvesting of canes, and extended the milling cycle,” Mr. Dimarucut explained.
Meanwhile, the Group’s ethanol plant, San Carlos Bioenergy, Inc. (SCBI), had been registering marked improvement in its production in the last two quarters. This was the result of a strategic shift in the sourcing of the company’s primary raw material, with the increase in milling from sugarcane syrup, whilst maintaining flexibility in the use of molasses, as prices soften.
“We are now fully focused on implementing solutions to address the factors causing volatility and higher costs in our industry and our Group. Efforts are currently underway to regain our position in the market,” he said.
RHI is listed in the Philippine Stock Exchange (PSEi: ROX). Further information can be obtained by visiting the web at www.roxasholdings.com.ph