Cojuangcos’ Central Azucarera de Tarlac trims losses in 3Q2015
The listed Central Azucarera de Tarlac which is controlled by relatives of President Benigno Simeon Aquino III trimmed its losses in the third quarter of 2015 with the increase in revenues and a cut in its expenses
Central Azucarera de Tarlac begins its fiscal year in June, a quarter before the milling season that traditionally starts in September or October.
In a disclosure to the stock exchange, Central Azucarera de Tarlac reported a net loss of P102.6 million from June to September 2015, trimming its losses by roughly a third from the P133.2-million loss reported in the same period in 2014.
Its revenues amounted to P77.4 million, about half more than the P57.5 million reported in the same period in 2014. The bulk of the revenues came from alcohol sales which amounted to P69.4 million.
Its gross expenses amounted to P19.3 million, a third less than the P28.9 million reported in the same period in 2014. The most significant cut in expenses was on salaries and wages that was trimmed by 22 percent to P6.9 million during the period. Spending on professional fees, however, increased by 36 percent to P5 million during the period and spending on dues and advertisements jumped by 115 percent to half a million pesos from P200,000.
The company geared for the start of the milling season by undertaking “the programmed and disciplined capital expenditure significantly utilized to increase efficiency in the milling and refinery operations.”
“The company expects to reverse these losses as it moves toward the milling season,” the disclosure said. “Revenue generation in the subsequent periods is expected to materialize; and, with increased volume and favorable market price being anticipated, established targets have high probability of being surpassed.”
Central Azucarera de Tarlac said it focused on the implementation of the strategies it came up with over the last several months that are meant to “ascertain the establishment of a solid foundation of corporate culture, financial resource management and operation productivity and efficiencies.” (By: Eileen A. Mencias)