RHI Chairman Pedro E. Roxas disclosed the turnaround is primarily driven by higher margins, lower overhead expenses and reduced financing charges.
We have also made some progress in deleveraging with a P900 million reduction, in our debts for the first nine months of operations," Mr. Roxas reported.
"Our EBITDA (earnings before interest, taxes depredation and amortization) reached a record level of P1.7 billion, or 181 percent higher than previous year's PS93 million," RHI President and Chief Executive Officer Renato C- Valencia reported.
Mr. Valencia, however, disclosed the company expects its net income to dip by fiscal yearend due to the regular, major off-season repairs and fixed costs in the next two months in preparation for the coming crop year.
"Our ethanol business, through Roxol Bioenergy Corporation, has already started to contribute substantially to our revenue stream, posting P457 million in revenues from P39 million a year ago." Mr. Valencia further explained. He added Roxol Bioenergy achieved a positive cash flow of P24 million compared to last year's negative cash flow of P165 million.
Consolidated revenues dipped 12 percent to P5.8 billion from the previous year's P6.6 billion as sugar prices this year significantly declined.
Raw sugar prices averaged P1,403 per bag. 34 percent lower than last year's P2,112. Refined sugar, on the other hand, averaged P2,006 per bag, 15 percent lower than last year's P2,361.
"Despite the lower sugar prices and volumes, our gross profit margin jumped to P1.6 billion from, last year's P591 million," Mr. Valencia further reported.
"Our energy cost dropped by 45 percent as our plants shifted from bunker to more cost efficient, eco-friendly and renewable fuel sources,' he said.
Mr. Valencia added this period's improved efficiencies resulting in higher raw production also contributed to the growth in margins.
"RHI also made significant improvements in production, with a two percent increase in consolidated raw output at 2.5 million bags despite a six percent decline in national production," he said.
Mr. Valencia added the company expects to unload all its sugar stocks by the end of the fiscal year next month on the heels of increased sugar consumption.
Media Contact:
Celest Jovenir
Telephone Number: (+632)810-8901 ext. 1811
Email address: cmjovenir.rhi@cadp.com.ph
Website: www.rhi-cadp.com.ph
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