RHI profit in steep fall to P19M from P615M

Listed agribusiness giant Roxas Holdings Inc. (RHI) reported consolidated net income after tax amounting to P19 million for fiscal year ending September from P615 million a year ago. Net earnings per share was at P0.01 in 2015, and P0.67 per share in 2014. 

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) amounted to P966 million in 2015 and P1.699 billion in 2014, the company reported to the bourse.

A cut in sugar production, both raw and refined, was blamed for lower profit during the period.

“The industry suffered a reduction in cane supply by approximately 5 percent. Output in Negros area dropped by 5 percent while in the Batangas area, it went down by 10 percent,” the report said.

Consolidated revenues amounted to P8.208 billion in 2015 from P8.317 billion in 2014 attributable to lower refined sugar and premium raw sugar revenues. Alcohol sales increased by P677 million, to P2.593 billion in 2015, inclusive of additional sales from newly acquired San Carlos Bioenergy, Inc.

The company posted a consolidated profit of P1.044 billion in 2015 which was 27 percent lower from 2014 due to lower volume of high margin products and higher fixed costs.

“Cane milled went down by 635 metric tons in 2015, or 20 percent compared to 2014. Cost of production increased due to higher planters subsidy and productivity assistance, fuel cost, depreciation and salaries, wages and employee benefits,” RHI reported.

RHI unit Central Azucarera Don Pedro Inc.’s (CADPI) in Nasugbu, Batangas output for crop year 2014-2015 decreased by 13 percent mainly due to lower supply of sugar cane in Batangas area by 10 percent.

Subsidiary Central Azucarera de la Carlota Inc.’s (CACI), operating in La Carlota City, Negros Occidental, also saw its raw production for crop year 2014-2015 falling by 20 percent, which was attributed to lower supply of cane in the Negros region that fell 5 percent, lower sugar recovery, and pole-vaulting of sugar planters to other mills.

Established since 1927, Roxas Holdings with its affiliate, Hawaiian-Philippine Company (HPCO), is one of the biggest raw sugar producers in the country with a combined capacity of thirty six thousand five hundred (36,500) metric tons cane per day.

The company also owns the second largest sugar refinery and the two biggest ethanol producers in the country with a combined daily production capacity of two hundred seventy five thousand (275,000) liters.

Bioethanol subsidiaries Roxol Bioenergy Corporation (Roxol) and San Carlos Bioenergy, Inc. (SCBI) are both operating in Negros Occidental.

RBC ethanol production for the fiscal year increased by 26 percent. Alcohol yield increased by 7 percent from 251 liters to 270 liters per ton of molasses. SCBI production from May-September 2015 was 9.783 million liters with an average yield of 242 liters per ton of molasses.

RHI also owns Najalin Agri-Ventures Inc. (NAVI), a corporate farm located in La Carlota City, Negros Occidental, and holds a 45.09 percent-equity investment in Hawaiian-Philippine Company (HPCO), a sugar company located in Silay City, Negros Occidental.

Equity earnings from associate company increased by 61 percent to P134 million in 2015 from P83 million in 2014 due to better margins of Hawaiian-Philippine Company.

Interest expenses decline by 14 percent to P271 million in 2015 from P315 million in 2014 due to lower interest rates.

Consolidated total assets stands at P20.537 billion at the end of fiscal year 2015, or P5.837 billion higher than the P14.700 billion in 2014 as a result of the Company’s acquisition of San Carlos Bioenergy Inc., higher working capital and additional revaluation increase on its land assets. Current assets went up by 59 percent or P1.331 billion from P3.569 billion in 2015 to P2.238 billion in 2014.

Provisional goodwill of P1.236 billion was recognized in 2015 arising from the acquisition of SCBI in 2015.RIZA LOZADA