Victoria’s Milling Company’s net income rises slightly despite El Nino
Victoria’s Milling Company Inc. reported a slight increase in its net income to P466.1 million in the quarter ending February 29, 2016 compared to P459.5 million in the same period last year despite the bleak outlook owing to the El Nino weather phenomenon.
Victoria’s Milling has two reportable business segments, sugar milling and distillery operations, although it also has its hands in food processing, real estate, leasing, entertainment, and power generation.
Despite a decrease in sugar milled and lower recovery, Victoria’s Milling’s raw sugar sales increased by 26 percent to P922.9 million, due mainly to a 22-percent increase in price and a three-percent increase in volume.
The company said the volume of sales increased as it drew down on its inventory.
Tolling fees from refining services, however, dropped by 47 percent to P290.1 million as the volume decreased.
High raw sugar withdrawals were also partly behind the decrease in volume.
Refined sugar sales increased soared to P91.6 million from P8.2 million in the same period last year and revenues from the sale of molasses expanded by 37 percent to P80.6 million because of an increase in the average selling price.
Revenues from its distillery operations fell to P76.5 million from P110.7 million because of the decrease in volume.
The company blamed the lower volume on the high inventory of buyers during the period.
Victoria’s Milling reported revenues amounting to P3.5 million from its power generation business, the first time the segment brought in money. The company’s newly incorporated power generation business focuses on renewable energy resources that it sells wholesale to power companies, distribution utilities, electric cooperatives, and retail electricity suppliers, among others. (By: Eileen A. Mencias)