RHI widens net loss to P360 million

MANILA, Philippines — The attributable net loss of sugar and ethanol producer Roxas Holdings Inc. (RHI) in the first quarter of its current fiscal year widened to nearly P360 million as revenues plummeted due to stoppage of its sugar and bioethanol businesses.

RHI said its net loss attributable to equity holders of the parent company during the three-month period ending in Dec. 31, 2023 reached P359.37 million, 83 percent higher than the P195.93 million net loss in the same period of 2022.

RHI said its consolidated revenues in the three months ending in Dec. 31, 2023 reached P48 million, nowhere near the P4.18 billion it posted in the same period of 2022.

RHI’s revenues during the quarter came from the sale of refined sugar. The company sold P1.31 billion of refined sugar in the first quarter of its fiscal year 2023.

The company attributed the almost 99 percent plunge in revenues to the closure of its sugar refinery business in Batangas, as well as the halting of the operations of its bioethanol assets.

Earlier this year, RHI announced the permanent ceasing of the operations of its wholly owned subsidiary Central Azucarera Don Pedro Inc. (CADPI) in Batangas to slash its losses.
In doing so, approximately 241 CADPI employees were terminated, RHI said.

Last year, CADPI decided to shut down its milling operations due to ballooning losses. It eventually sold its sugar mill in Nasugbu, Batangas to Universal Robina Corp., which operates a sugar mill in nearby Balayan, Batangas.

Furthermore, RHI explained that the assets of San Carlos Bioenergy Inc. (SBCI), its bioethanol subsidiary in Negros Occidental, have been classified as “held for sale” at the end of its fiscal year 2023 last Sept. 30.

The SCBI assets were valued at P3.52 billion that includes P1.7 billion in liabilities directly associated with the assets at the end of last year, according to RHI.
RHI said it is in discussion with a prospective buyer of the SCBI assets. The company did not name the prospective buyer.

RHI explained that the sale of the SCBI assets would be used to pay its maturing obligations.
During the first quarter of its fiscal year, RHI did not produce refined sugar and ethanol.

 In comparison, the firm produced 407 50-kilogram bags of refined sugar and 8,260 liters of ethanol in the October to December of 2022.

RHI said its consolidated operating expenses declined by 57 percent on an annual basis to P62 million from P144 million.