MANILA, Philippines – Central Azucarera de Tarlac, Inc. (PSE:CAT) disclosed its 2016 financial statements. The company’s fiscal year ends on June 30. It reported 2Q fiscal year 2016-2017 net loss of P76.6 million, an improvement of 23 percent. This is compared to a negative P99.0 million in 2Q FY2015-2016. EBITDA was reported at P93.1 million, an increase of P38.6 million or 71 percent compared to the same period in 2015-2016.
The YTD second semester ended with P29.9 million outperforming the negative P4.0 million YTD EBITDA last year. While the company positioned itself to increase sugar inventory and carefully determine its sale activities amidst the volatile market prices, revenues dipped by 13 percent at P201.3 million compared to P231.4 million for the same period last year.
Central Azucarera said that sugar tolling fees and alcohol sales continued to contribute significantly resulting in an increase in gross profit at P30.4 million. Meanwhile, Cost of goods sold has improved as a function of revenues by 15 percent as CAT was able to execute its drive to improve efficiency and recovery in the farm and plant operations.
The disclosure of Central Azucarera further stated that the company intensified numerous non-core revenue. This generated activities in the period of expected low sales such as disposal of scrap, inventory and supplies management. As a result, operations showed improvement of profitability and cash position. As sugar market prices strengthen in the succeeding quarters, it is expected that the company will achieve its latest estimates to surpass the fiscal year 2016 profitability levels.
Total assets stood at P6.4 billion as of December 31, 2016, while total liabilities were P3.6 billion. Shareholders’ equity was at P3.8 billion.
There was a decrease in cash by P22.8 million or 24 percent and was due from cash used in operating activities of P73.0 million, P153.8 million net cash used in investing activities and P203.2 million net cash provided by financing activities. The increase in ending inventory amounting to P35.7 million or 23 percent represents the buildup of raw sugar that remains unsold as of the balance sheet date. The net increase in property, plant, and equipment after depreciation amounting to P91.4 million or 21 percent is due to the strategic acquisition of various equipment and launch of off-milling repairs program.
The current ratio of Central Azucarera was at P1.88x on December 31, 2016. Asset-to-equity ratio for the same period was at P2.29 asset for every P1 of equity. Debt-to-equity was at P1.29 worth of debt for every Peso of equity.
CAT shares closed at P14.84 on Friday, February 17, 2017.