Strong Real Estate And Hospitality Buoys Roxas and Company, 1Q 2022 Revenues Beat Targets

Roxas and Company Inc.’s (RCI) real estate and high-end hotel revenues beat targets, up 240% and 10% vs. Budget, respectively.

Photo Insert: Anya Resort Tagaytay occupancy is up 4 percentage points vs. the same period last year and is 11-points better than full-year 2021.

Roxaco Land Corp. (RLC), a fully owned subsidiary of RCI, rode the market rebound and accelerated sale of raw land, housing estate units, and memorial plots.

Despite the early year COVID-19 surge and Taal volcano activity, Anya Resort Tagaytay occupancy is up 4 percentage points vs. the same period last year and is 11-points better than full-year 2021 due to higher room demand and patronage of its Samira restaurant and wellness offers.

This offset the 7% decline in Go Hotel revenues as quarantine facilities were temporarily shut down to transition to regular guests and price pressure from post-pandemic competition.

Coconut product exports declined by 4% vs. last year due to production delays. Raw nut purchase price rose sharply in 2022, exacerbating the steady upward trend since Q3 2020. Overall Group revenues at P363 million is 20% above Budget.

Gross profit exceeded Budget by 60%. Lower spending from cost control and timing of expenses pushed Opex-to-Revenue to 26%, lower than the 30% Budget. The resulting Operating Income of P77 million represents a four-fold increase compared to the phased plan.

RCI booked a Net Income of P16 million before an equity loss of P69 million from its 23% interest in Roxas Holdings Inc. (RHI). The equity loss was due mainly to the delayed turn-around program of the sugar operations which is expected to be finished in 2022.

RCI is staying its strategic course of growing sales and embedding operational excellence while deleveraging to manage debt.

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