VICTORIAS Milling Corp. said profit for the first quarter of its fiscal year ending August hit P46.12 million, down 61 percent from P119.08 million from the previous year.
The company added it had higher operating cost for the period vis-a-vis its revenue increase that caused the decline in overall profit.
Victorias Milling said it hauled 960,000 tons of cane milled for the period, 40 percent higher than last year’s 680,000 tons resulting to revenues of P1.84 billion, a 38-percent increase from P1.33 billion in the previous year.
It said the huge cane hauled was due to an overall increase in cane supply and early start of milling compared to other mills in the province with the cane milled evenly distributed between its districts.
Raw sugar recovery improved to 1.82 LKG—short for 50-kilogram bag equivalent—per ton cane milled compared to last year’s 1.75 LKG per ton cane milled.
This resulted to total raw sugar production of 1.7 million LKG, up 40 percent from 1.2 million LKG the prior year. Molasses output increased 44 percent to 39,000 metric tons, from 28,000 metric tons.
Refined sugar net production, meanwhile, more than tripled 1.18 million LKG, up from 360,000 LKG, due to the high level of company-owned raw sugar millshare and early start of refinery operations.
“In CY [calendar year] 2017 to 2018, management continued its strategy to purchase canes to provide liquidity to planter customers and to focus group efforts in converting and selling refined sugar,” the company said. “The overall increase in revenue for the first quarter of CY 2017 to 2018 was driven by the significant increase in volume of refined sugar sold of 704,000 LKG, which is triple the volume sold in the same quarter last year.”
The company added “the sale of refined sugar generated higher revenue of P694 million, despite the 18-percent decline in average refined sugar prices from the same quarter last year.”
“Consequently, tolling volume declined by 79 percent or 764 thousand LKG and reduced total revenue by P166 million.”
The volume of raw sugar and molasses sold, meanwhile, increased to 430,000 LKG and 17,500 metric tons respectively, resulting to an added revenue of P71 million, though raw sugar prices dived 22 percent.
“Demand for alcohol declined and revenue dropped by 64 percent or P92 million in the first quarter of CY 2017-2018. Comparative total revenues from other segments are relatively stable,” it said in a report.