Roxas Holdings income jumps 36%

MANILA, Philippines - Listed sugar miller Roxas Holdings, Inc. (RHI) reported yesterday a 36-percent increase in its net income for the first half of its fiscal year on better profit margin, lower operating expenses and reduced interest expenses.

In a statement, the company said its net income for the first semester of its fiscal year ending March 31, 2013 rose to P205 million from P151 million in the same period the previous fiscal year despite a drop in consolidated revenues

RHI’s consolidated revenues fell 19 percent to P2.9 billion from P3.5 billion last year. This included a one-time export of carry-over raw sugar from the preceding crop year, amounting to P1.1 billion.

RHI executive chairman Pedro E. Roxas said the company achieved a higher net income for the first half due to better gross profit margin, lower operating expenses, and reduced interest expenses.

“Our gross profit margin for the first six months was higher due to increased volumes of sugar produced despite low prices. The group’s operating expenses also improved with the cost reduction measures that were put in place beginning last year. The decline in interest expenses also boosted the group’s net income,” said Roxas.

RHI president and CEO Renato C. Valencia said the cost reduction measures implemented across the group are gradually paying off and boosting overall operations, particularly in the case of Central Azucarera de la Carlota Inc. (CACI) in Negros Occidental.

“The cost reduction measures had spurred positive results in the group’s milling operations and relations with planters. In the case of CACI, the fast turnaround of trucks within the district and the services it offers have attracted more planters, even those outside the district, to mill with CACI,” said Valencia.

CACI milled 1.92 million tons cane for crop year (CY) 2012-2013, up 8.5 percent from 1.77 million tons cane milled last year. CACI’s production yield also rose to 2.14 50-kilogram bags per ton cane (LKg/TC) from 1.99 LKg/TC previously.

Its raw sugar production rose 17 percent to 4.12 million LKg from 3.52 million LKg last year.