MANILA, Philippines — Listed sugar miller Victorias Milling Co. Inc. (VMC) saw its net income increase by seven percent to P816 million for crop year 2019 on high sugar prices.
“This was mainly due to higher sugar price levels compared to last year and the early start of commercial operations of the distillery plant which generated 27 percent of the group’s gross profit,” VMC said.
Revenues, however, declined 16 percent to P5.58 billion.
“Even with the decline in revenue, gross profit improved 25 percent mainly from high sugar prices which compensated for the high cost of cane hauling in the current year,” it said.
Production data showed that the company milled 2.7 million metric tons (MT) of cane, down from last year’s three million MT.
VMC attributed the drop in production to the El Niño episode that limited soil moisture needed for optimum growth of the sugarcane crop. This has also resulted in lower cane productivity and tonnage per hectare.
The sugar milling business saw a 44 percent decline in revenues to P2.42 billion due to lower sugar net production despite the early start of refinery operations.
Alcohol sales plunged 93 percent to P17.7 million while power generation revenues decreased by 31 percent to P24 million.
The company’s distillery commenced operations only in January last year after the completion of its expansion and dehydrator projects.
Sales of molasses, on the other hand, surged to P208.4 million from P21 million.
VMC is engaged in integrated raw and refined sugar manufacturing with plant facilities in Negros Occidental.
The company operates mill and refinery facilities for sugar and allied products, and engineering services. Its operating subsidiaries include Victorias Food Corp., Victorias Agricultural Land, Canetown Development Corp., and Victorias Golf and Country Club Inc.