VMC income up 14% to P637 million

MANILA, Philippines — Victorias Milling Co. Inc. (VMC) reported a 14 percent rise in its consolidated net income in the nine months of the current crop year, driven by higher raw sugar sales.

In a financial report to the Philippine Stock Exchange, VMC said net profit from September 2020 to May 2021 grew to P636.8 million from P556 million in the same period last year.

Total revenues also jumped by 48 percent to P6.3 billion due to higher raw sugar sales and the recognition of the milling service revenue of P1.4 billion, which was a result of the adoption of the revenue recognition guidance for sugar millers that became effective in September 2019.

VMC said the adoption of the new standard also increased cost of sales and services by P1.3 billion and increased gross profit by P48.4 million.

Meanwhile, operating expenses declined by 28 percent to P392.6 million due to lower provisions for losses and professional and contracted services cost.

In contrast, other income increased by 22 percent to P175.6 million as a result of higher storage, handling and insurance fees and sale of bagasse.

VMC is primarily engaged in integrated raw and refined sugar manufacturing with facilities in Negros Occidental.

It also has businesses in food processing, leisure, real estate, and energy generation.

In a separate disclosure, VMC said it received the Energy Regulatory Commission’s approval to link its 40-megawatt biomass-fired cogeneration power plant to the Visayas grid.

“However, the ERC denied VMC’s application to operate and maintain such facilities, noting that the National Grid Corp. of the Philippines (NGCP) shall operate and maintain the same,”it said.