Universal Robina income slightly up

Universal Robina Corp. grew its net profit by 1.3 percent to P8.55 billion in the first nine months of its fiscal year ending June as core businesses expanded by a double-digit pace.

Overall earnings for the nine-month period, however, were tempered by the slowdown in treasury earnings after the company reduced its financial assets and incurred foreign exchange losses.

In its disclosure to the Philippine Stock Exchange Wednesday, URC said it generated P69.239 billion through the consolidated sale of goods and services during the nine-month period. This was fueled by the double-digit rise in its branded consumer food segment and agro-industrial group.

The turnover of the branded consumer foods group, excluding the packaging division, grew by 20.4 percent to P56.83 billion during the period.

Domestic sales of the branded consumer food group expanded by 26 percent year-on-year to P38.88 billion. Its international sales reached P17.95 billion in the first three quarters—higher than the P16.32 billion reported in the same period last year. In US dollar terms, sales registered an increase of 2.5 percent year-on-year to $406 million mostly coming from Vietnam, Thailand and China.

The branded consumer food business accounted for 82.1 percent of URC’s consolidated sale of goods and services.

Meanwhile, business of its packaging division went down by 10.8 percent year-on-year to P750 million.

Sales from the agro-industrial group amounted to P6.17 billion, up by 10.6 percent.

Also, sale from the commodity foods group dipped by 20 percent to P5.48 billion, weighed down by the sugar business, which declined by 38.1 percent.

Market valuation gain on financial assets at fair value declined by 92.1 percent year-on-year to P43 million in the first nine months of fiscal year 2014.

Finance revenues—consisting of interest income from investments in financial instruments—also fell by 64.5 percent to P173 million.

URC incurred foreign exchange losses amounting to P120 million.