C00336-2017

SECURITIES AND EXCHANGE COMMISSIONSEC FORM 17-C

CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER

1. Date of Report (Date of earliest event reported)
Jan 24, 2017
2. SEC Identification Number
PW-364
3. BIR Tax Identification No.
000-270-220-000
4. Exact name of issuer as specified in its charter
VICTORIAS MILLING COMPANY, INC.
5. Province, country or other jurisdiction of incorporation
Negros Occidental, Philippines
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
VMC Compound, J.J. Ossorio St., Brgy. XVI, Victorias City, Negros Occidental Postal Code 6119
8. Issuer's telephone number, including area code
+63-34-399-3588
9. Former name or former address, if changed since last report
-
10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA
Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
Common 2,613,240,320
11. Indicate the item numbers reported herein
Item 9

The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.

Victorias Milling Company, Inc.VMC

PSE Disclosure Form 4-13 - Clarification of News Reports References: SRC Rule 17 (SEC Form 17-C) and
Section 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

Clarification on News article posted in BusinessMirror (Internet Edition) on January 23, 2017, stating that: “Victorias Milling sees 12.3% decline in full-year profit."
Source BusinessMirror (Internet Edition)
Subject of News Report Victorias Milling sees 12.3% decline in full-year profit.
Date of Publication Jan 23, 2017
Clarification of News Report

Clarification on News article posted in BusinessMirror (Internet Edition) on January 23, 2017, stating that:

"VICTORIAS CITY, Negros Occidental—Listed sugar-miller Victorias Milling Co., Inc. (VMC) said it expects its net income for the current fiscal year (FY) to decline by nearly 12.3 percent to P700 million due to lower production.

‘Our original outlook was P1 billion, but I think [income] could settle at around P700 million,’ VMC Chief Finance Officer Teresita V. Ilagan told reporters in a news briefing here on Monday.

‘It’s mainly because of the softening of prices and our production level is not as much as what we had originally projected. And then of course, sugar recovery is also much lower,’ Ilagan added.

. . . .

The company said its milling tonnage would approximate the 3.1 million metric tons (MMT) of sugarcane recorded in FY 2015-2016.
VMC President and COO Eduardo Concepcion also said the average milling recovery rate for FY 2016-2017 could go down to 1.9-kilogram bags per ton cane (LKG/TC), from 2 LKG/TC recorded a year ago.

‘Our original target was 3.2 MMT of sugarcane, but from the looks of it, it would most likely [settle] between 3 MMT and 3.1 MMT,’ Concepcion said.

. . . .

The company expects total raw sugar output to decline by 8.23 percent to 5.7 million 50-kilogram bag (lkg), or around 285,000 metric tons (MT), from 6.21 million lkg (310,500 MT) produced in FY 2015-2016.

. . . .

The company said it expects its refined sugar production in FY 2016-2017 to decline by nearly 20 percent to 4.2 million lkg. from 5.21 million lkg posted a year ago.

. . . .

The company’s capital expenditure for FY 2016-2017 is pegged at P300 million. The amount will be used to maintain and improve their factories.


. . . .”

In response to the request of the Exchange for clarification and/or confirmation of the above-quoted news article, the corporation hereby states that the estimates were based on recent market and industry outlook.

VMC is constantly monitoring developments in prices and supply trends to mitigate any possible adverse outcome in order to meet its original projections.

On the other hand, VMC's capital expenditure for crop year 2016-2017 is around P300 million.
Other Relevant Information

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Filed on behalf by:
Name Eva Rodriguez
Designation Compliance and Information Officer