Sugar miller Roxas Holdings says net income rose despite lower revenues

Sugar miller Roxas Holdings Inc. on Monday reported a 36 percent increase in net income for the first half of fiscal-year ending March 31, helped by better profit margin, lower operating expenses and reduced interest expense. Net income for the first semester rose to P205 million from P151 million a year earlier despite a drop in consolidated revenues, the company noted in a statement. Consolidated revenues—including a P1.1-billion one-time export of carry-over raw sugar from the preceding crop year—declined by 19 percent to P2.9 billion from P3.5 billion in the same comparable year. “Our gross profit margin for the first six months was higher due to increased volumes of sugar produced despite low prices, said executive chairman Pedro E. Roxas. Operating expenses improved with cost reduction measures implemented last year. The decline in interest expense also boosted the group’s net income, said Roxas. President and CEO Renato C. Valencia noted the cost reduction measures were gradually paying off and was having an impact on overall operations, particularly in the case of Central Azucarera de la Carlota Inc. (CACI) in Negros Occidental. “The cost reduction measures had spurred positive results in the Group’s milling operations and relations with planters. In the case of CACI, the fast turnaround of trucks within the district and the services it offers have attracted more planters, even those outside the district, to mill with CACI,” said Valencia. — VS, GMA News