August 06, 2021
RHI tempers nine-month losses amidst challenges in the Philippine sugar industry
MANILA, PHILIPPINES – Listed sugar and ethanol producer Roxas Holdings, Inc. (PSEi: ROX) (RHI) today reported a nine-month net loss amounting to PhP727 million from a net loss of PhP876 million, before income from discontinued South Negros operations, in the same period last year.
“While there was an increase in the volume of sugarcanes milled across sugar-producing regions, the industry had to contend with the pernicious effects of a prolonged La Nina phenomenon affecting the country. Heavy rainfall caused delays in harvesting and extended the milling period,” said RHI Chairman Pedro E. Roxas. He added that, “we are also seeing a decline in the yield from sugarcanes, partly because of more water content diluting the sweetness of the canes.”
RHI President and CEO Celso T. Dimarucut stated that despite the continuing challenges of unfavorable weather conditions, RHI has started to embark on strategic actions targeted to address factors causing volatility and higher costs in the industry and the Group. “We have seen marked improvements in our ethanol unit, as a result of strategic and opportunistic shifts and flexibility in feedstock, to address production costs which have increased in recent years. This was made possible as RHI gradually regains its market share in canes from its competitors since it bolstered its cane acquisition master plan. Likewise, other mid- and long-term capacity building plans for our sugar business are underway, to improve the bottomline of the Group. We hope that, with these efforts, we can unlock the Group’s core strengths amid changing conditions, and assure sustainable operations in the coming years, ” Mr. Dimarucut 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