Roxas Holdings cuts 9-month losses
Integrated sugar and bioethanol producer Roxas Holdings Inc. (RHI) was able to trim its losses for the first nine months of its fiscal year beginning in September despite the adverse effects of the Taal Volcano eruption and the new coronavirus pandemic.
In a disclosure, RHI reported a net loss of P434 million, down from P652 million in the same period last year.
“RHI experienced the twin impacts of the eruption of Taal Volcano in Batangas and the global pandemic resulting from the coronavirus disease but the group showed its resilience in facing these headwinds,” RHI chair Pedro E. Roxas said.
“While the group’s sugar segment, particularly, Central Azucarera de la Carlota Inc., registered gains from the increased sales of raw sugar, this is significantly tempered by the losses from the ethanol units,” he added.
According to RHI president and CEO Hubert D. Tubio, the company’s alcohol segment reeled from the high feedstock (molasses) cost, worsened by lower production volumes as a result of the decreased demand for ethanol due to the lockdown.
However, RHI and its subsidiaries managed to lower its operating expenses.
Moving forward, RHI executive vice president and CFO Celso T. Dimarucut said the company was continuing to look for ways to minimize its debt, including the sale of its assets in Negros Occidental to Gokongwei-led Universal Robina Corp.
“We hope that this transaction for our sugar mill Central Azucarera de la Carlota Inc. and ethanol facility Roxol Bioenergy Corp. will be completed at the soonest time,” he said, adding that the proceeds from the sale would be used to trim RHI’s debts.
