CADP Posts P175 Million Net Income

April 26, 1999 PSE CIRCULAR FOR BROKERS NO. 869-99 PRESS RELEASE CADP POSTS P175 MILLION NET INCOME Central Azucarera Don Pedro reported consolidated net income of P175.7 million for the first semester of the present crop year covering the period September 1998 to February 1999. CADP a publicly-listed sugar company thus reversed its net looses of P100 million for the same period last crop year. The strong growth was driven by robust consolidated net sales which increased 18% from P1.3 billion in the first semester of 1998 to P1.6 billion this year. The company recorded sales of 916,021 50-kilogram bags of raw sugar, 257,324 50-kilogram bags of refined sugar and 2,557,008 50-kilogram bags that the company tolled for outside parties. LLjur Production volume for refined and raw during the period increased by 81.22% and decreased by 41.86% respectively, while volumes for tolling operations grew by 201.98%. First semester income from operations grew by 139% from P151 million last year to P362 million in 1999, while total assets reached P6.02 billion CADP also benefited from a more favorable financial situation. Interest expense declined to P232 million from P294 million in the first semester last year. The company was recently able to avail of a syndicated credit facility worth P475 million which was used to retire certain maturing short-term obligations. The negative business climate and bad weather as well as the unavailability of credit adversely affected CADP's performance last crop year. However, according to Miguel A. Gaspar, CADP President, "Just like everybody else, CADP had difficulty getting access to financing. However, our positive performance during the first semester of the year only proves that the Company is a good credit risk, with prudent management., sound business fundamentals, and manageable levels of debt."