Victorias Milling earnings decline 14% on lower sugar prices

MANILA, Philippines — Listed sugar miller Victorias Milling Co. Inc. (VMC) saw its net income for crop year 2016 decline by 14 percent to P654 million due to challenging market factors such as lower sugar prices.

Production data showed that the company milled 3.22 million tons of cane as of the end of August, up three percent year on year.

This is also a bit higher than VMC’s projection of 3.2 million tons of cane for the crop year as the favorable weather resulted in better farm productivity.

However, the company’s raw sugar production decreased to six million 50-kilogram bags (LKG) in 2017 from 6.2 million LKG last year due to lower productivity and quality of canes milled.

Milling recovery rate was also down at 1.87 50-kilogram bags per ton cane (LKG/TC) milled for the two seasons compared with the 2.0 50-LKG/TC last year.

VMC’s raw sugar sales fell 55 percent to P1.5 billion.

Sales of molasses rose 15 percent to P181.2 million while alcohol sales increased 14 percent to P451 million.

Revenues from power generation improved to P26 million.

VMC is engaged in integrated raw and refined sugar manufacturing with plant facilities in Negros Occidental. It operates mill and refinery facilities for sugar and allied products, and engineering services.

Its operating subsidiaries include Victorias Food Corp., Victorias Agricultural Land Corp., Canetown Development Corp., and Victorias Golf and Country Club Inc.