Sugar producer Roxas Holdings Inc. (RHI) said its loss in its fiscal nine months ending June 30 narrowed to P587.83 million, from last year’s P731.91 million.
Gross revenues more than doubled to P6.12 billion from last year’s P3.79 billion after the completion of the standalone refinery project at Central Azucarera Don Pedro Inc.’s plant in Batangas.
“Out of 12 refineries in the Philippines operating this crop year, CADP is now the lone refinery continuously producing refined sugar for the industrial and consumer markets beyond the sugarcane harvest season that ended in May,” company chairman Pedro E. Roxas said.
“This shows that refining can be achieved year-round to add value to raw sugar produced by the millers and farmers across the Philippines. The fundamentals to recovery have been set, and gains brought from this pivotal project on the refinery will be more significantly realized in the near-term, with the expected increase in refined sugar production and in tolling agreements with customers.”
For its fiscal third quarter alone, the company booked a net loss of P100.23 million, narrower by half than last year’s P152.93-million loss. Revenues grew by almost half to P2.81 billion as against last year’s P1.9 billion.
The company said CADP recently embarked on a strategy to maximize refinery production through expanding its fuel sources, by de-coupling from its milling operations and the limited availability of mill-generated bagasse used as fuel.
The company said planters and millers have expressed their intention to mill ahead this August as the entire sugar industry grapples with the decline in local sugar production by around 17 percent brought about by unfavorable weather conditions.
This is seen to address the tightness in sugar supply, particularly in refined sugar, it said.
This crop year, CADP is set to produce an estimated 2.7 million 50-kilogram bags of refined sugar, and is poised to reach maximized capacity of 5 million LKG bags in the next crop year.
Over the years, the company said it has built its brand and reputation in the market for its refined sugar, having passed the most stringent scrutiny of multinational customers and obtaining certifications from independent agencies.
“We shall continue to leverage on this leader- advantage as well as the strategic location of CADP enabling it to service most of the industrial customers in the key manufacturing hubs in Southern Luzon and Metro Manila,” company president and CEO Celso T. Dimarucut said.