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MANILA - Roxas Holdings Inc. said it turned a profit in the first eight months of its current fiscal year, as the country’s largest sugar producer mulls over fully integrating its operations.
In a statement, the Philippines’ largest sugar producer said its net income surged 158 percent to P668 million this year from P259 million in the same period of its previous fiscal year. The company ends its fiscal year on September 30.
“RHI has definitely turned around, thanks to our focus on cost containment and proper margin management and the continuing support of our major banks,” said the company’s chairman, Pedro E. Roxas.
Renato C. Valencia, RHI president and chief executive, said the company however expects earnings to dip for the rest of its current fiscal year because of major off-season repairs in the coming months to prepare for the next cropping year.
He said sugar consumption will continue to rise with Asia consuming 60 percent of the world's output, but warned of volatile prices and high production costs.
"Thus, only sugar businesses with the volumes, low-cost operations, broad and competitive product portfolio, and innovative management will survive and flourish,” Valencia said.
With this, RHI is aiming to have a regional presence by restructuring its business model from being a mere producer to becoming an integrated producer, trader and processor of alcohol.
Besides hiring foreign experts to undertake a technical audit of the company's plants, RHI is also shifting to cloud-based computing for its enterprise resource planning, for real time information and decision-making and to ensure proper controls and audit trails.
Valencia said RHI is centralizing the bidding of its major purchases of goods and services to make it transparent, broaden the company’s supplier base and reduce material, parts and services costs.
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