RHI income up 15% on higher production output

Roxas Holdings Inc. (RHI) saw a 15-percent jump in its consolidated net income after tax, reaching P75.6 million in the first six months of its fiscal year ending March due to improved factory and cost efficiencies.

Despite lower sugar prices resulting in lower revenues during the half year in review, RHI’s sugar unit recorded an increased gross profit rate of 19 percent from 13 percent in 2016 due to the increased level of production output and the resulting reduction in production costs.

Lower sugar prices nudged consolidated revenues to a 33-percent fall to P4.96 billion from P7.41 billion.

RHI also saw lower sales in raw sugar as it opted to preserve its raw sugar mill share for later refining and to be able to achieve higher profitability.

As for ethanol production, RHI saw a 5-percent increase to 35.1 million liters from 33.4 million liters in the same period in review.

“Our sugar and ethanol units were able to overcome the impact of lower sugar prices and the increase in ethanol inventory during the period,” RHI president and chief executive Hubert D. Tubio said in a statement.

“The current peak in sugar production, higher importation level of high fructose corn syrup and the previous year’s sugar importation caused significant volatility in raw sugar prices while the alcohol unit’s volume slowed down due to the industry’s increased inventory levels,” Tubio said.

According to RHI, its sugar unit Central Azucarera de la Carlota Inc. (CACI) is seen posting a new output record at more than two million tons of milled cane for this crop year, which would mean a 40-percent annual surge.

From October 2016 to March 31, raw sugar output totaled 4.93-million 50-kilogram bags, 9 percent more than the 4.51 million bags in the same period during the previous fiscal year.