MANILA, Philippines–The diversification into the bioethanol business has shored up earnings of sugar group Roxas Holdings Inc. amid more challenging commodities business.
RHI posted P615 million in net income after tax for fiscal year 2014 ending Sept. 30, up by 30 percent year on year, driven mainly by higher sales of ethanol, RHI chair Pedro Roxas reported to the Philippine Stock Exchange.
“Our ethanol sales climbed by P1.5 billion on the back of higher ethanol production to 32 million liters from 14 million liters last year,” Roxas said.
RHI president and chief executive officer Renato Valencia said the group’s sugar business margins had dropped by 70 percent year on year owing to operational challenges. However, Valencia noted that major investments had been made since last year in improving its facilities and ensuring better recoveries and efficiencies in preparation for the challenges arising from the reduction of tariffs on sugar to 5 percent in 2015.
“The drop in our total bank debts by P2 billion for 2014 helped boost our NIAT (net income after tax),” Valencia added.
RHI’s revenue rose by 37 percent year on year to P8.3 billion. However, its cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) slid by 5.31 percent to P1.69 billion.
In the meantime, the company’s board declared on Dec. 5 the second tranche of the group’s annual 35 percent dividend payment amounting to P0.12 per share on Jan. 15, 2015, for stockholders on record as of Dec. 22, 2014.