VMC allots P1.1 billion for acquisition, construction projects

MANILA, Philippines — Listed sugar miller Victorias Milling Co.Inc. (VMC) is allocating P1.1 billion of its retained earnings for its acquisition and construction initiatives.

In a disclosure to the Philippine Stock Exchange yesterday, VMC said its board of directors approved the appropriation of  P1.1 billion of its retained earnings for the acquisition of a medium pressure boiler and the construction of warehouse facilities.

“The projects were previously approved by the board of directors and are expected to be completed by 2023,”VMC said.

Meanwhile, the company’s board also approved the appropriation of P274.2 million of retained earnings for the declaration of regular cash dividends in the amount of P0.05 per share and special cash dividends in the amount of P0.05 per share.

VMC said that both regular and special cash dividends will be paid to all common shareholders of record as of Dec. 22 on January 18, 2022.

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 the nine months of its crop year ending May 2021, VMC registered a 14 percent rise in its consolidated net income to P636.8 million.

Revenues also jumped by 48 percent to P6.3 billion from P4.27 billion in the same period last year.

VMC attributed the increase 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 Sept. 1, 2019.

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