Capex, eyes 300% profit growth
2016 earnings were dragged down by the cost of upgrading sugar mills and expansion of its alcohol plant.
“The exercise had slowed down our operations for a while but RHI made it through, and now, with our upgraded mills and expanded ethanol plants, we are confident that we will be able to steer our company back to greater profitability,” he said.
Roxas said business will also get a boost from the return of a significant volume of sugarcane to its mills after the firm worked to revive its relationship with its planter-partners.
RHI chief finance officer Celso Dimarucut said they are targeting a 31 percent growth in earnings before interest, taxes, depreciation and amortization (EBITDA) to R1.7 billion from R1.3 billion last fiscal year.
He added that they are planning to spend R1.5 billion to R1.7 billion to complete plant upgrades and expansion programs started last year with about R1 billion of capex allotted for its sugar business. (JAL)