Roxas Holdings trimmed Q1 net loss on higher sales, lower expenses

Roxas Holdings Inc. (RHI) narrowed its net loss in the first quarter of its fiscal year to P196 million, crediting it to offseason gains and lower operating expenses.

The integrated sugar and ethanol producer reported a net loss of P240 million in the same period a year ago, which was also exacerbated by the pandemic. The firm starts a fiscal year in October.

“Despite the inherent challenges in the industry with the significant decrease in cane supply in Batangas and increased fuel costs over the years, the group managed to trim its first quarter net loss as a result of decreases in operating expenses brought about by the implementation of right-sizing initiatives and completing the term-out of the group’s short-term debts after paying off the previous long-term debts,” RHI president and CEO Celso Dimarucut said.

Consolidated revenues reached P716 million during the period in review, more than double the P352 million recorded previously.

Dimarucut said the company booked higher revenues since it was able to sell ethanol produced from the early start of San Carlos Bioenergy, Inc.’s operations, plus its residual refined sugar inventory.

According to RHI chair Pedro Roxas, the company’s first-quarter operations usually end in a loss considering that there are very limited transactions during the period.

“While San Carlos Bioenergy, Inc.’s distillery operations started operating in the middle of October 2021, Central Azucarera Don Pedro, Inc. (Cadpi) undertook its offseason repairs and maintenance activities in the first quarter. Cadpi’s mill and refinery started operating in January 2022, aligned with the availability of sugarcane in the region,” said Roxas.

RHI is expecting its operations to further improve in the succeeding periods as cane deliveries increase and the boiler conversion project for Cadpi’s refinery operations is fully implemented.