Roxas Holdings’ losses widen amid challenging environment
MANILA -Bludgeoned by high production costs and the influx of cheaper sugar imports, sugar and ethanol producer Roxas Holdings Inc. (RHI) reported a wider net loss in the six-month period ending March this year.
In a disclosure on Wednesday, RHI said net loss attributable to equity holders of the parent firm increased to P586.2 million during the period from P491.5 million a year prior.
Although six-month revenues surged by 71.9 percent to P5.7 billion, its cost of sales rose at a faster pace of 73.1 percent to P5.8 billion.
“[T]he significant challenges confronting the business and the sugar industry have dealt heavy blows to RHI specifically in the sugar refinery operations of Central Azucarera Don Pedro, Inc. (Cadpi),” said RHI chair Pedro Roxas.
To recall, RHI ceased Cadpi’s raw sugar milling operations starting crop year 2022 to 2023. Cadpi had grappled with the significant decline of sugarcane supply in Batangas, exacerbated by its aging and oversized mill equipment.
“Amid the government’s move in February this year to import 440,000 MT (metric tons) of refined sugar, in addition to the 150,000 MT earlier imported this crop year 2022-2023, it has been difficult for local sugar refineries to compete given the high prices of raw sugar feedstock and of outside fuel costs which have increased significantly in recent years,” Roxas said.
“These costs eroded the white premium margin to entice local refineries to process and refine raw sugar,” he added.
Back in February, the Sugar Regulatory Administration authorized the importation of 440,000 MT of refined sugar to boost the country’s buffer stock and stabilize selling prices.
Meanwhile, Roxas said the ethanol plant operated by another RHI unit San Carlos Bioenergy Inc. has seen marked improvements in operating yields as it continuously adopts programs to increase efficiency.
