ROXAS HOLDINGS, Inc. (RHI) saw its attributable net loss widen to P390.31 million for the second quarter of its financial year from P296.57 million a year earlier.
“It has been difficult for local sugar refineries to compete given the high prices of raw sugar feedstock and outside and of outside fuel costs which have increased significantly in recent years,” said RHI Chairman Pedro E. Roxas in a statement on Wednesday.
“These costs eroded the white premium margin to entice local refineries to process and refine raw sugar,” he added.
In its unaudited financial statement, the company also reported a six-month net loss of P586.25 million attributable to equity holders of the parent firm, wider than P491.49 million previously brought about by higher input costs. The company’s fiscal year starts in October and ends in September of the following year.
The listed sugar producer reported that its revenues from contracts with customers jumped by 71.9% to P5.69 billion from P3.31 billion in 2022.
Mr. Roxas also attributed the losses to the challenges brought about by the closure of the sugar refinery operations of its subsidiary Central Azucarera Don Pedro, Inc.
On the other hand, yield improvements were seen in its ethanol plant under San Carlos Bioenergy, Inc. due to the adoption of programs.
In the six-month period, the company’s costs of sales rose 73.1% to P5.82 billion from P3.36 billion previously.
Meanwhile, operating expenses fell 3.9% to P272 million from the P283 million reported a year earlier.
The company said that it intends to “explore means to operate the refinery viably and address its impending risks” through deals with sugar mills and traders.
“It likewise continues to study options to potentially generate cash from its unutilized land and other assets,” the disclosure read.
RHI is a holding company engaged in the operations of mill and refinery facilities to manufacture sugar and allied products. Its other subsidiaries are CADP Insurance Agency, Inc., CADP Port Services, Inc., RHI Pacific Commercial Corp., and Northeastern Port Storage Corp. — Sheldeen Joy Talavera