Roxas Holdings widens loss amid higher costs

MANILA, Philippines — Listed sugar and ethanol producer Roxas Holdings Inc. (RHI) said its core net loss in the six months ending March 31 widened amid high prices of raw materials and fuel costs.

In a disclosure to the Philippine Stock Exchange yesterday, RHI said its core net loss rose to P590 million from P496 million in the same period last year.

RHI chairman Pedro Roxas pointed to “the significant challenges confronting the sugar industry [which] have dealt heavy blows to RHI, specifically in the sugar refinery operations of Central Azucarera Don Pedro Inc. (CADPI).”

“Amid the government’s move in February this year to import 440,000 metric tons (MT) of refined sugar, in addition to the 150,000 MT earlier imported this crop year 2022-2023, it has been difficult for local sugar refineries to compete given the high prices of raw sugar feedstock and of outside fuel costs which have increased significantly in recent years. These costs eroded the white premium margin to entice local refineries to process and refine raw sugar,” he said.

On the other hand, RHI’s  ethanol plant under San Carlos Bioenergy Inc. (SCBI) has seen marked improvements in operating yields as it continuously adopts programs to increase efficiency.

RHI said it continues to explore means to operate the refinery viably and address its impending risks through partnerships with sugar mills and traders, and to implement programs across all units to significantly cut down on operating expenses.

It likewise continues to study options to potentially generate cash from its unutilized land and other assets.