Listed sugar and ethanol producer Roxas Holdings Inc. (RHI) reported a 135-percent increase in profit in the first nine months of its current fiscal year, ending in September, compared to year-ago level.
RHI’s consolidated net profit rose to P240 million from P102 million a year ago driven by improved production in its sugar business and the efficiency of its plants.
The group’s sugar business milled 3.461 million metric tons of cane (TCM) for the period, up 26 percent from last year’s 2.748 million TCM. It also produced 6.497 million 50-kilogram (LKg) bags of sugar, surpassing last year’s production of 5.1 million LKg.
“The improved relationship we have with planters and the upgrades that we implemented for the equipment and processes at our plants have paid off,” RHI President and CEO Hubert D. Tubio said. “We were able to reduce the overall costs of production, which also alleviated the impact of soft prices of sugar.”
Net income of RHI’s ethanol business also rose by 28 percent to P293 million from P229 million in the same period a year ago. This was despite the segment’s lower revenue at P3.6 billion from P4.2 billion a year ago caused by lower average price for ethanol and prolonged maintenance work at the plants in the early part of the year.
RHI’s earnings before interest, tax, depreciation and amortization (Ebitda) hit P1.6 billion, up by 23 percent. “This is the second year of sustained growth in Ebitda,” it said.