URC posts 67% jump in profit to P7.74B

MANILA, Philippines—Gokongwei-led Universal Robina Corp.’s net profit attributable to equity holders jumped by 66.9 percent to P7.74 billion in fiscal year that ended in September 2012.

The growth was attributed to improved gains from branded food operations.

Including minority interest, URC’s net profit for the period grew by 62.9 percent to P8.2 billion from year-ago level, the company’s recent regulatory filing showed.

URC reported that sales expanded by 6 percent to P71.2 billion for the fiscal year, led by the branded consumer food business, which benefited from better volume and lower input prices.

In the meantime, the company recognized P1.55 billion in market valuation gain on financial instruments, compared to the P1.16-billion market valuation loss in fiscal year 2011, due to the recovery in the market values of bond and equity investments.

On its core operations, local food sales went up by 16.2 percent but slower growth from the international business (+6.3 percent) and decline in sugar sales (-39.9 percent) tempered overall growth. In sum, the branded consumer food business, including the packaging division, expanded sales by 11.3 percent to P56.26 billion.

Domestic food sales alone amounted to P34.35 billion versus P29.57 billion in the previous year.

URC remained the dominant market player in salty snacks, candies, chocolates and ready-to-drink tea in the Philippines.

International sales ended the year at $471 million, or P20.16 billion, for the year. “This was supported by higher revenues from all the countries except Thailand as the effects of flood continued to affect the sales of its main categories, biscuits and wafers, which are not consumer staples and are discretionary,” URC reported.

Vietnam, the biggest contributor, accounted for 42.8 percent of URC’s total international sales in dollar terms. “Vietnam continues to solidify its leadership in ready-to-drink tea business as C2 brand has already taken over the number one market position in that category. Indonesia also grew sales with its newly launched extruded snacks,” the company said.

Operating income from URC’s agro-industrial segment rose by 12 percent to P359 million in fiscal 2012 due to improved margins of the farm business.

Originally posted at 04:58 pm | Tuesday, January 15, 2013

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