RHI posts 36% profit growth

Sugar producer Roxas Holdings Inc. reported a 36-percent year-on-year profit increase in the first six months of its current fiscal year (October 2012 to September 2013) on better gross profit margin, lower operating expenses and lower debt burden.

In a statement, RHI also said net income for the second quarter ending March 31 had surged by 141 percent to P171 million from P70 million a year ago.

For the first semester of its fiscal year, RHI reported a 19-percent decline in consolidated revenue to P2.9 billion. The company said comparative revenue level in the previous year of P3.5 billion included a one-time export of carry-over raw sugar from the preceding crop year amounting to P1.1 billion.

“Our gross profit margin for the first six months was higher due to increased volume of sugar produced despite low prices. The group’s operating expenses also improved with the cost reduction measures that were put in place beginning last year. The decline in interest expenses also boosted the group’s net income,” RHI chair Pedro Roxas said.

RHI president Renato Valencia said cost reduction measures implemented across the group were gradually paying off and boosting overall operations, particularly in the case of Central Azucarera de la Carlota Inc. (CACI) in Negros Occidental.

“The cost reduction measures had spurred positive results in the group’s milling operations and relations with planters. In the case of CACI, the fast turnaround of trucks within the district and the services it offers have attracted more planters, even those outside the district, to mill with CACI,” Valencia said.