Sugar refiner Victorias Milling Co. said Monday it posted a net income for P77.5 million in the first quarter of fiscal year 2019-2020 covering the period September to November 2019, down 4.3 percent from P81 million recorded in the same period last year.
VMC said in a disclosure to the stock exchange first-quarter consolidated revenue increased 6 percent to P1.4 billion from a year earlier, on increased ethanol and raw sugar sales.
The company said, however, that tolling and refined sugar volume significantly declined following the lower production output because of the late start of refining operations.
Production cost was comparatively higher given the increase in cost of cane hauling resulting from tight competition among mills.
VMC said that despite the higher revenues, gross profit margin declined by 1 percent to P211 million. Operating expenses were kept below 10 percent of revenue but were still slightly higher by P4 million compared to the same period last year.
VMC operates a raw sugar mill with a daily capacity of 15,000 metric tons. Cane supply is sourced from both district and non-district planters with a sharing allocation of 69.5 percent for planters and 30.5 percent for VMC.
The group also operates a refinery plant with a daily capacity of 25,000 LKG (50 kilogram). It also provides toll refinery services to traders and planters for their raw sugar milled by other sugar centrals.
A division of VMC produces alcohol and ethanol with an actual daily capacity of 50,000 liters with molasses as the primary raw material. Molasses are sourced from sugar operations which produce it as a by-product.
VMC is also engaged in power generation, food processing, and real estate. The company is 30.9-percent owned by LT Group Inc. of tycoon Lucio Tan.