VMC earnings up 17% to P764 million

MANILA, Philippines — Listed sugar miller Victorias Milling Co. Inc. (VMC) saw its net income increase by 17 percent to P764 million for crop year 2018 despite lower sugar prices.

VMC reported higher earnings despite the 24 percent decline in revenues to P6.6 billion.

“We managed to increase our net income despite declining sugar and alcohol prices and lower volume sold,” the company said.

The company milled three million metric tons (MT) of cane, down eight percent.  This prompted raw sugar production to decrease nine percent to 5.5 million 50-kilogram bags (LKG).

Milling recovery rate was slightly lower at 1.85 50-kilogram bags per ton cane (LKG/TC) milled compared with the 1.87 50-LKG/TC a year ago.

VMC’s sugar milling business declined by 30 percent to P4.32 billion due to lower sugar net production despite early start of refinery operations.

Alcohol sales fell 42 percent to P260 million, while revenues from  power generation jumped 32 percent to P35 million.

Sales of molasses grew to P420.9 million.

The company’s distillery commenced operations in January after completing its expansion and dehydrator projects.

Alcohol production reached 5.8 million liters compared to last year’s 8.6 million liters due to the prolonged shutdown from repair and improvements.

VMC is engaged in integrated raw and refined sugar manufacturing with plant facilities in Negros Occidental. It operates mill and refinery facilities for sugar and allied products, and engineering services.

Its operating subsidiaries include Victorias Food Corp., Victorias Agricultural Land Corp., Canetown Development Corp., and Victorias Golf and Country Club Inc.