Victorias Milling trims income on lower output

MANILA, Philippines - Listed sugar miller Victorias Milling Co. Inc. saw its net income decline 20 percent for the second quarter of the current crop year owing to lower cane productivity.

In a regulatory filing, the company said it posted a net income of P385 million in December 2016 to February this year, down from P466 million in the same period a year ago.

Production data showed that total canes hauled decreased by 326,805 tons or 15 percent due to unfavorable climatic conditions and stiff competition for cane supply.

The company’s raw sugar production fell 43 percent to 2.26 million 50-kilogram bags (LKG) due to the drop of volume of canes hauled for the year and lower quality of canes milled.

Raw sugar sales dipped 41 percent to P785 million on low cane supply and change in sales strategy.

Milling recovery rate was also down at 1.84 50-kilogram bags per ton cane (LKG/TC) milled compared with the 1.99 50-LKG/TC milled last season.

Alcohol produced in the second quarter also decreased 16 percent to four million liters due to late startup of production but still recorded a P46 million increase in alcohol revenues.

Meanwhile, the company’s power project exported 7,800 megawatts per hour to the grid as compared to 1,400 MWh in the same period last year.

The firm’s power generation segment pertains to its excess power generated from operations which are then sold to wholesale electricity stock market.

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, Victorias Agricultural Land, Canetown Development,  and Victorias Golf and Country Club.