VMC profit rises 14% to P370.7 million

MANILA, Philippines — Earnings of Victorias Milling Co. Inc. (VMC) rose by 14 percent on an annual basis in the first quarter of crop year ending November after its costs declined by about the same rate.

VMC said its net income during the September to November period last year reached P370.75 million, about P46.3 million higher than the P324.407 million it recorded in the same period in 2023.

The sugar miller reported a 15-percent year-on-year decline in the cost of its sales and services during the first quarter. The company’s cost of sales and services reached P2.09 billion compared to P2.46 billion in the same period in 2023.

Meanwhile, the firm’s revenues dropped by 13 percent on an annual basis to P2.51 billion from P2.89 billion.

“The net decrease in revenue by 13 percent is due to the late start of the milling season, resulting in lower quantity of sugar sold, offset by the increase in revenue share from ethanol and power and slight increase in sugar and ethanol prices compared to the same period last year,” VMC said yesterday.

The increase in VMC’s other income also contributed to the company’s higher earnings during the reference period. The firm’s other income during the three-month period doubled to P134.68 million from P67.43 million.

“The increase in other income is largely due to power feed-in tariff rate differential, storage, handling and insurance fees paid from last crop year’s production and foreign currency gain,” the company said.

VMC reported a slight dip in its attributable net income at the end of its crop year 2023-2024 as a result of the plummeting of sugar prices in the market.

Its net income in the crop year 2023-2024 ending August stood at P1.55 billion, about 1.3 percent lower than the P1.57 billion recorded in the same period of crop year 2022-2023.

VMC said its revenues plunged by 26 percent on an annual basis to about P11.38 billion because of lower sugar prices and slower movement of refined sugar stocks.

“The decline in revenue is mainly due to the plummeting sugar price, which is about a 20 percent drop compared to the same period last year, the slower movement of refined sugar and the decline in power export partially offset by the increase in ethanol sales,” the company said.

“While the sugar price is trending downwards, the production costs continue to rise due to increased costs of labor and materials,” it added.