A SUBSIDIARY of Roxas and Co., Inc. (RCI) is set to boost production from its integrated coconut processing plant after the approval of a P100-million loan, the listed firm said in a stock exchange disclosure on Tuesday.
Edgar P. Arcos, RCI president and chief executive officer, said the loan is for the working capital of the processing plant for the rest of 2021. The plant is located in the town of Tupi, South Cotabato.
“The company expects a sharp production rebound in the second half of 2021 as demand for its coconut cream and milk, coconut water concentrate, and virgin coconut oil continues to rise,” Mr. Arcos said.
RCI unit Roxas Sigma Agriventures, Inc. (RSAI) secured the loan from the Development Bank of the Philippines.
RSAI is pushing the first phase of its expansion program to meet stronger demand from international business-to-business (B2B) customers in North America, Europe, and Asia-Pacific.
Based on its website, the company is a joint venture between RCI and Sigma Xynergies Corp. Founded in 2017, it manufactures coconut-based products such as coconut cream, coconut milk, virgin coconut oil, and coconut water concentrate.
Higher revenues allowed RCI to trim its net loss to P14.24 million in the first quarter from P167.46 million in the same period last year. Total revenues during the period rose 517% to P535.07 million against P86.79 million a year earlier.
On Tuesday, shares of RCI at the stock exchange dropped 2.86% or three centavos to finish at P1.02 apiece. — Revin Mikhael D. Ochave