Central Azucarera de Tarlac Inc. (CAT), the Cojuangco family’s sugar milling firm, expects to return to profit in its second and third fiscal quarter after ending with losses in September.
“The company expects to reverse these losses as it moves toward the milling season in the second to third quarter of the (fiscal) year,” the publicly listed firm said in a quarterly report to the Philippine Stock Exchange.
“Revenue generation in the subsequent periods is expected to materialize; and, with increased volume and favorable market price being anticipated, established targets have high probability of being surpassed,” it added.
Despite sugar milling not being in season, the firm’s net losses was lower at P102.546 million from July to September, from P133.164 million in its first fiscal quarter last year.
Operating revenues in the same quarter also improved to P77.355 million, from P57.520 million the same time last year.
“The first quarter of fiscal year 2015 was spent in a focused implementation and execution of the strategies crafted over the last several months,” the company said.
“CAT was deliberate in the performance of its committed business blueprint to ascertain the establishment of a solid foundation of corporate culture, financial resource management, and operation productivity and efficiencies.”
CAT’s operating expenses also contributed to the improved business performance, spending P155.877 million in July to September 2015, from P192.701 million a year ago.
“As the company awaits the start of the milling season, it (has undertaken) the programmed and disciplined capital expenditure, and significantly utilized efficiency in the milling and refinery operations,” the company added.
“Moreover, CAT has successfully managed minimal operating costs amidst the expected low-revenue generating quarter.”
Established in 1927, CAT is involved in sugar milling and refinery, distillery, and operating carbon dioxide plants in Barrio San Miguel, Tarlac City.
The company’s board of directors is headed by Jose “Peping” Cojuangco Jr., an uncle of President Benigno Aquino 3rd.