Victorias Milling income falls 56% on rising costs despite revenue gain

LISTED sugar milling company Victorias Milling Co., Inc. (VMC) reported a 56.23% decline in attributable net income to P162.28 million for the three months ended November, as rising operating costs offset revenue gains.

In a regulatory filing on Thursday, the company said its net income fell from P370.75 million a year earlier.

Total revenue for the period rose 28.82% to P3.24 billion from P2.51 billion in the same period last year.

Revenue from sales increased 61.34% to P3.1 billion from P1.92 billion, while revenue from services fell 76.43% to P139.69 million from P592.74 million a year earlier.

Other income, which includes storage and handling fees, interest income, and investments, dropped 28.21% to P96.7 million from P134.68 million.

Meanwhile, VMC’s cost of sales and services climbed 40.06% to P2.93 billion from P2.09 billion, driven by higher inventories used.

The figure also included a P222.14-million provision for inventory write-downs due to lower market prices of molasses and raw sugar.

Operating expenses rose 16.91% to P218.64 million from P187.02 million, reflecting increases in both general and administrative expenses and selling expenses.

On Thursday, VMC shares closed 3 centavos, or 1.4%, lower at P2.12 apiece. — Vonn Andrei E. Villamiel