Roxas Holdings eye P235M net income this year
Roxas Holdings Inc., now majority owned by First Pacific, is eyeing a net income of P235.5 million this year, a phenomenal increase from the P18.6 million reported for 2015.
Roxas Holdings is the largest raw sugar producer in the country and is the second largest sugar refiner.
It diversified into bio-ethanol production and co-generation in 2015 to maintain leadership and remain competitive.
Roxas Holdings will be selling additional shares to the public in May from which it expects to gross some P1.1 billion which it will use to pay part of the loans of a subsidiary that was used to partly finance the acquisition of San Carlos Bionenergy Inc. in April 2015 and to improve the operations of its sugar mill.
“In order to generate reliable and robust source of steam power for the sugar milling and refining plant, the Company plans to acquire an additional 8MW steam turbine generator.
In addition, the Company plans to improve milling efficiency through the installation of a heavy duty pressure feeder to the sugar plant milling equipment.
The estimated cost of these equipments is approximately P350.0 million.
The Company expects to procure these by 2nd half of 2016,” Roxas Holdings said in a disclosure.
Roxas Holdings is eyeing revenues of P10.2 billion this year from last year’s P8.2 billion.
The increase is expected to come mainly from a substantial increase in revenues from the sale of alcohol which is programmed to jump to P3.9 billion from last year’s P2.4 billion.
Revenues from the sale of refined and raw sugar, and tolling fees are also expected to increase.
Roxas Holdings hopes to cut its operating expenses by some 20 percent to P816 million from P1 billion last year. (By: Eileen A. Mencias)