Victorias Milling profit down 55% to P418 M in 9 months

Listed sugar miller Victorias Milling Co. Inc. (VMC) saw its net income drop by 55 percent in the nine-month of its current crop year due to lower revenues.

In a regulatory filing, the company said its net earnings fell to P418 million in September 2017 to May 2018 from P934 million in the same period last year.

Revenues declined 19 percent to P5.8 billion.

“Decline in cane supply and sugar recovery in the current crop year negatively affected all stakeholders in the sugar industry, “the company said.

Production data showed that the company milled 2.88 million metric tons (MT) of cane after 36 weeks, 3.3 percent lower than last year, resulting in a five percent decline in sugar production to 5.31 million 50-kilogram bags (LKG).

Milling recovery rate, likewise, was slightly lower at 1.86 50 LKG/ TC.

VMC’s sugar milling business declined by 18 percent to P5.56 billion due to lower sugar net production despite early start of refinery operations.

Meanwhile, alcohol sales reported a 55 percent drop to P153 million, while power generation revenues jumped 70 percent to P34 million.

The company’s distillery commenced operations only in January this year after completion of its expansion and dehydrator projects.

Alcohol production was only at 3.38 million liters compared to last year’s 6.42 million liters.

VMC expects an increase in alcohol production in the succeeding months due to expanded daily capacity of 50,000 liters.

The company is engaged in integrated raw and refined sugar manufacturing with plant facilities in Negros Occidental. It operates mill and refinery facilities for sugar and allied products, and engineering services.

Its operating subsidiaries include Victorias Food Corp., Victorias Agricultural Land Corp., Canetown Development Corp., and Victorias Golf and Country Club Inc.