Victorias Milling income slides 12.6% on higher costs

VICTORIAS MILLING Co., Inc. (VMC) reported a 12.64% drop in attributable net income to P1.35 billion for the fiscal year ended August, as rising operating costs offset revenue gains.

In a regulatory filing on Tuesday, the listed sugar miller said net income fell from P1.55 billion a year earlier.

Total revenue increased 11.48% to P12.68 billion from P11.38 billion in the previous fiscal year.

Revenue from sales rose 19.89% to P10.54 billion from P8.79 billion, while revenue from services declined 17.12% to P2.14 billion from P2.59 billion.

Other income, which includes storage and handling fees, interest income, and investments, grew 16.98% to P356.83 million from P305.05 million.

VMC’s cost of sales and services climbed 13.04% to P10.78 billion from P9.54 billion, which the company attributed to “elevated raw material costs and overall increased manufacturing expenses.”

Operating expenses also rose 31.92% to P876.27 million from P664.24 million, driven by higher taxes and licenses — particularly from stock dividend issuance — as well as higher professional fees, representation, research and development, and retirement benefit costs.

Shares of VMC last traded at P2.01 apiece on Dec. 15. — Vonn Andrei E. Villamiel