Manila Bulletin

Capex, eyes 300% profit growth

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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)

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