Victorias Milling Corp. (VMC), a leading sugar producer in the country, grew its net profit by 21.5 percent year-on-year to P934.86 million in the nine-month period ending May as the group opted to sell more refined sugar amid production woes.
For the three months ending May alone, VMC’s net profit surged by close to 45 times last year’s level to P429.53 million, based on the company’s regulatory filing.
Nine-month revenues ballooned to P7.26 billion, 73-percent higher year-on-year mainly due to the increased volume of refined sugar sold. Refined sugar revenue increased by P4.7 billion from the same period previously.
Total canes milled for the period ending May 31 decreased by 4 percent or 117,068 metric tons year-on-year, which VMC attributed to stiff competition for cane supply alongside the delay in the start of milling operations.
As of end-May, VMC reported a 22-percent drop in milling volume from the district covered area while there was a 7-percent increase in milled volume from the non-district area.
Raw sugar recovery for the period also decreased by 7 percent year-on-year to 1.89 50-kilogram bags (LKG) per ton cane milled. The lower recovery rate was due to lower quality of canes.
Total sugar production decreased by 12 percent to 5.591 million LKG.
Total gross sugar refined stood at 4.29 million LKG for the period ending May, 18 percent lower than the previous year.
Alcohol produced also decreased by 12 percent year-on-year to 6.42 million liters this year because of late production schedules. —DORIS DUMLAO-ABADILLA