Listed sugar miller Roxas Holdings Inc. (RHI) has been hurt by the high cost of plant repairs as well as a shortage in cane supply in the first nine months of the year.
The situation has pulled down its net income after tax by 97 percent.
In a quarterly report filed with the Philippine Stock Exchange, the miller said net income declined by 97 percent to P18.5 million from P615 million a year earlier. Core net income slumped by 73 percent to P169 million from P645 million.
“Our core income took a hit as our factories reeled from difficulties that prompted our sugarcane planters to go to other mills. This worsened the shortage of cane supply. We also had to spend roughly P700 million for new equipment and repairs to address the problems at the plant,” RHI Chairman Pedro E. Roxas said in a separate statement.
The industry cane supply decreased by 5 percent, with Batangas suffering 10 percent drop and 5 percent for Negros Occidental.
Roxas said the company experienced multiple concerns: declining sugar prices and rising production costs.
The firm’s ethanol operations slightly eased the impact of sugar with a net income contribution of P215 million from Roxol Bioenergy Corp. (RBC). The newly acquired San Carlos Bioenergy Corp. Inc. conveyed P122 million.
In output terms, RBC improved by 26 percent to 40.522 million liters of ethanol, while San Carlos Bioenergy started off with 9.783 million liters after it was consolidated with RHI. RHI acquired San Carlos Bioenergy in May.
Roxas said the company is implementing tighter measures to prop up the sugar business while ramping up ethanol production.