URC net profit surged 29.4% to P10B in 2013

Screengrab from https://www2.urc.com.ph/

MANILA, Philippines—Gokongwei-led Universal Robina Corp. grew its net profit in fiscal year 2013 ending September by 29.4 percent year on year to P10.04 billion on higher earnings from branded consumer foods, agro-industrial and commodities businesses.

Cash flow for the fiscal year as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) expanded by 23.4 percent to P13.9 billion from the level a year before, based on URC’s regulatory filing.

Consolidated sale of goods and services amounted to P80.99 billion for the fiscal year, 13.8 percent higher than the level a year before.

Bulk of URC’s sales came from the branded consumer foods segment, which grew its turnover by 17.8 percent year on year to P64.23 billion. This segment accounted for 79.3 percent of URC’s total consolidated sale of goods and services for fiscal year 2013.

The agro-industrial segment contributed sales of P7.39 billion, slightly rising from P7.37 billion the previous year. The feed business decreased by 13.9 percent due to weaker sales volume but this was offset by the 13.9 percent increase in farm business, in turn due to higher sales prices of hogs and poultry products.

The commodity foods segment grew sales by 8.3 percent year on year to P8.2 billion, led by the sugar business, which expanded sales by 24.1 percent due to the early start of the milling season, good cane quality and supply, and the contribution coming from Tolong, a newly acquired mill.

Breaking down URC’s flagship consumer food business, domestic operations grew by 22.8 percent to P42.18 billion in net sales for fiscal 2013, attributed to the strong performance of the beverage division, which grew by 65.6 percent. The beverage business was buoyed by powdered beverage and ready-to-drink products.

Meanwhile, URC’s international food business grew sales by 9.4 percent to P22.05 billion. In US dollar terms, sales value increased by 11.9 percent to $527 million in fiscal year 2013 from $471 million in fiscal 2012 as sales volume rose by 14.3 percent.

Vietnam, the biggest contributor to URC’s offshore business, contributed 43.9 percent of total international sales in dollar terms. This was attributed to the sustained strong demand for ready-to-drink beverages C2 and Rong Do.