Roxas Holdings Inc. (RHI), a producer of sugar and ethanol, has stated to revive its sugar business in Batangas province if a suitable business opportunity arises in the future, reported Inquirer.Net.
RHI does not anticipate the immediate resumption of regular operations at Central Azucarera Don Pedro Inc. (Cadpi) and cannot provide a fixed timetable for any plans or activities involving Cadpi under its present circumstances. However, the company stated that Cadpi will maintain and preserve the refinery plant and related assets until a viable business opportunity arises for the resumption of operations.
RHI permanently halted the operations of the plant in Nasugbu town on February 28 due to business losses. Consequently, it terminated all its employees a month later, on March 29. Cadpi faced challenges from various factors, including decreased sugarcane supply, outdated mill equipment, and increased government importation of refined sugar in recent years.
The Sugar Regulatory Administration has informed Cadpi that it can sell refined sugar to the public again once current inventories in the market have been depleted.
In a move to concentrate on sugar refining, RHI initially ceased Cadpi’s sugar milling operations in December 2022. Subsequently, Universal Robina Corp., a food and beverage conglomerate led by the Gokongwei family, acquired Cadpi’s sugar milling machinery and equipment. However, the cessation of milling operations adversely affected RHI’s profitability for the fiscal year ending September 2023. It incurred a net loss of P2.3 billion, a significant increase from P797.01 million in the previous period, while revenues declined by 19.8 per cent to P4.2 billion.
To enhance liquidity, RHI stated that it is currently exploring various options, including inviting new investors to facilitate its operations once more. It is also contemplating the disposal of its non-core assets.
