Roxas Holdings widens net loss

MANILA, Philippines — Sugar and bio-energy company Roxas Holdings Inc. (RHI) has increased its net loss in the first quarter of the current crop year despite continuing industry and market challenges.

In a disclosure to the local bourse, RHI said net loss surged to P240 million in  September to November 2020 from only P36 million after taking into consideration the P247 million non-recurring gain from the sale of an investment in the same period last year.

RHI recently re-organized its operations following the completion of the sale of its assets in La Carlota City in September 2020.

Pedro Roxas, RHI chairman, said the first quarter of operations for the remaining businesses of the company showed losses as there were very limited transactions for the period given the seasonal nature of the business.

“We started the distillery operations of our San Carlos Bioenergy Inc. (SCBI) in October 2020, while milling in Central Azucarera Don Pedro Inc. began in mid-December 2020, after completing the off-season repairs and maintenance activities of these plants,” Roxas said.

“This is the inherent seasonality in the group’s operations which coincides with the availability of sugarcanes,” he said.

RHI remains optimistic that operations of the remaining businesses will perform better than last year despite the challenges facing the industry, including the higher than usual precipitation expected this year brought about by the La Niña phenomenon.

Total ethanol production for the period reached 5.66 million liters, up 75 percent from the 3.26 million liters from a year ago as imposition of lockdowns slowly eased.

By next quarter, RHI expects to complete arrangements with major creditor banks to term out existing short-term loans.

RHI is the largest integrated sugar business in the Philippines which manages 100 percent of Central Azucarera Don Pedro, Inc. in Batangas, and Central Azucarera de la Carlota, Inc., RCB and majority of SCBI.