SUGAR producer Victorias Milling Co. Inc. (VMC) saw net income for its fiscal first quarter ending Nov. 30, 2024 grow by 13.6 percent to P368 million from P323.8 million in the same period in 2023.
This was achieved despite a 13-percent drop in consolidated revenues to P2.51 billion from P2.89 billion a year earlier, which the firm attributed to the late start of the milling season.
“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 in a quarterly report on Tuesday.
“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,” it added.
By segment, net income from sugar milling operations declined by 14.96 percent to P182.96 million from P210.3 million as revenues dropped 25.3 percent to P1.82 billion from P2.44 billion.
Net income from distillery operations also fell to P102.04 million from P134.98 million a year earlier.
On the other hand, VMC’s power generation segment swung to a net income of P113.19 million, reversing the net loss of P1.94 million the previous year, while other income also turned positive with a profit of P65.75 million against a net loss of P23.13 million in the same period in 2023.
VMC said that raw sugar, ethanol, power and molasses sales helped contribute revenues in the quarter.
Raw sugar sales reached P1.17 billion from P1.21 billion and ethanol sales rose to P498.34 million from P439.56 million.
Power sales surged to P170.94 million from P81,000 a year earlier, but this was offset by a drastic drop in sales of refined sugar to P49.26 million from P326.3 million, while sales of molasses and other products contributed P2.65 million and P23.25 million, respectively.
Services income slumped to P170.94 million from P900.79 million.
VMC shares last traded at P2.00 each on Tuesday.
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