Higher earnings from ethanol and power boosted the profitability of listed company Victorias Milling Co. Inc. (VMC) in the three months ending November last year despite lower sugar sales.
In a stock exchange disclosure, VMC reported its net income attributable to shareholders of the parent company amounted to P370.74 million for the quarter ending last November from P324.41 million in the same period a year ago.
Net loss attributable to non-controlling interests widened to P2.8 million from P607,000.
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The company’s revenues totaled P2.51 billion, a decrease of 13.1 percent from P2.89 billion as the sugar milling season in the country started late.
Revenues from the sale of raw sugar dropped by 2.7 percent to P1.17 billion. Ethanol sales rose 13.4 percent to P498.34 million, while power generation sales reached P170.94 million.
Last year, the Sugar Regulatory Administration (SRA) announced that the milling season for the crop year 2024-2025 was delayed from the usual Sept. 1 start date to improve cane maturity and increase the yield of local farmers as the El Niño-induced dry spell substantially affected their harvest.
VMC said the decline in sugar sales was “offset by the increase in revenue share from ethanol and power and a slight increase in sugar and ethanol prices compared to the same period last year.”
It also reported an increase in other income, climbing to P134.68 million from P67.43 million.
“The increase in other income is largely due to power feed-in tariff (FIT) rate differential, storage, handling, and insurance fees paid from last crop year’s production and foreign currency gain,” it added. The FIT provides fixed payments to renewable energy suppliers in the country.
Meanwhile, its cost of sales and services stood at P2.09 billion, down by 14.9 percent.
VMC’s core segments are sugar milling, refinery, power generation, and distillery operations, which are heavily invested in property, plant, and equipment, representing 52 percent of total assets.
“The group continues to invest in capital expenditure aimed to upgrade the plant and improve operational efficiencies, where some are expected to be implemented within the crop year,” it added.