Roxas Holdings pares losses to ₧752M

SUGAR and ethanol producer Roxas Holdings Inc. (PSE: ROX) said it was able to pare down its loss during its fiscal year ending September to P752 million from last year’s P939 million.

ROX Chairman Pedro O. Roxas said the unfavorable weather conditions, including La Niña, have been adversely affecting cane supply in recent years.

“The Philippine sugar industry is one of the main agricultural sectors vulnerable to severe climate change. A recent example being typhoon Odette earlier in crop year 2021 to 2022, which negatively impacted sugarcane production, resulting in a general decline in cane supply, as well as, lower sugar recovery,” Roxas said.

Roxas said the company’s business pivot to focus on its sugar refinery is proving to be a just- in-time project.

The Batangas area, where its unit Central Azucarera Don Pedro (CADP) has been operating a sugar mill and sugar refinery, has completed the stand-alone refinery project, which removed the refinery business’ dependency on the mill, particularly on the mill-generated fuel bagasse and steam. This has allowed the refinery plant to operate for almost ten months, significantly longer than the other sugar refineries in the country.

“We feel that this will provide [ROX]’S stakeholders with a viable and more sustainable business, considering the continued strong demand for refined sugar,” he said.

ROX President and CEO Celso T. Dimarucut said is optimistic that CADP will be able to refine 5 million LKG (50 kilogram) bags next crop year, close to its maximum capacity.

“ROX is set to help the government ensure a sustainable supply of quality refined sugar at reasonable prices, and also decrease our country’s refined sugar importation. We have also been actively partnering with other millers to value-add to their raw sugar output,” Dimarucut said.

He added that the listed firm “is leveraging this first-mover advantage and CADP’S strategic location to enable it to service most of the industrial customers in the key manufacturing hubs of Southern Luzon and Metro Manila.”

On the other hand, the company’s ethanol unit, San Carlos Bioenergy Inc. continues to reap the advantage of its flexibility in the sourcing of primary raw materials.

“We have recorded substantial improvements in SCBI, with the increase in milling, while still maintaining flexibility in the use of molasses or sugarcane syrup, as opportunities arise,” he said.