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Roxas says ‘18 income down 54% to P54.6 million

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Roxas Holdings Inc., a sugar milling company majority-owned by Hong Kong’s First Pacific Co. Ltd., reported a net income of P54.6 million in fiscal year ending September 2018, down 54 percent from P120 million a year ago, on higher interest expenses.

RHI said in a disclosure to the stock exchange consolidated revenues in 2018 climbed eight percent to P11.8 billion from P10.9 billion in 2017.

The company attributed the higher revenues to the increase in the average selling prices and volume sold of refined sugar.

Revenues from sugar operations, which contributed 73 percent of the total sales, hit P8.5 billion up 17 percent from a year ago level.

Alcohol operations, which delivered 27 percent of total revenues, amounted to P3.2 billion, down from a year ago level, due to lower volume sold and the lower average selling price in 2018.

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Operating expenses were flat at P1.02 billion, but the interest cost in 2018 amounted to P502 million, up from last year’s P444.3 million, due to availment of short-term loans and higher interest payments.

RHI as of end September 2018 had P14.76 billion in consolidated liabilities. 

RHI last year signed an asset sale purchase agreement with Universal Robina Corp. involving its sugar milling and refining operations in Batangas to reduce debts. The completion of the sale agreement is still subject to regulatory and creditor banks’ approvals.

The proposed transaction as of January 14 is still under review by the Philippine Competition Commission, the government’s anti-trust body.

“However, the company is committed to the proposed sale transaction and expects it to be completed after the PCC approval is secured,” RHI said.

Total raw sugar production in Batangas is around 3 million 50-kg bags or roughly 6 percent of total annual national sugar production.

The sale of sugar milling plant in Batangas will enable RHI to focus on its sugar operations in Negros island.

Share price of RHI on Tuesday closed unchanged at P2.87.

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