VMC net income tumbles on low sugar prices

MANILA, Philippines — Low sugar prices and output dragged the earnings of listed sugar miller Victorias Milling Co. Inc. (VMC) by more than a third in the first half of its current crop year.

VMC said its net income attributable to shareholders of the parent company fell by 36 percent year-on-year to P648.02 million in the six-month period ending in February from a year-ago level of P1.01 billion.

“The decline in results is mainly due to the plummeting sugar price, which is about a 19 percent drop compared to the same period last year, the slower movement of refined sugar and ethanol and the decline in power export,” VMC said in its financial report filed with the Philippine Stock Exchange.

“The provincial sugarcane output is lower than last year which already impacted the sugar production level for the period,” VMC added.

VMC saw its gross revenues from September to February plunging by 31 percent to P6.78 billion from P9.78 billion.

Sales of goods, including sugar, accounted for 72 percent of the company’s top-line.

Company revenues from the sales of good reached P4.86 billion, 32 percent lower than the P7.15 billion it posted in the previous crop year.

VMC said its revenues from raw sugar rose by 18 percent to P2.72 billion from P2.29 billion.

However, its revenues from refined sugar sales plunged by 66 percent on an annual basis to P1.11 billion from P3.3 billion.

Meanwhile, the sugar miller’s total cost of sales and services during the six-month period fell by 27 percent to P6.02 billion from P8.21 billion.

The listed firm saw its gross profit falling to P758.28 million from P1.58 billion in the previous crop year.