URC net profit goes up by 15.2% to P11.65B as of September 2014
MANILA, Philippines – The Gokongwei-led Universal Robina Corp. chalked up a net profit of P11.65 billion in its fiscal year ending September 2014, 15.2 percent higher year-on-year, as the company expanded the branded consumer food business here and abroad.
In a disclosure to the Philippine Stock Exchange on Wednesday, URC reported a 14.1 percent year-on-year growth in net sales to P92.38 billion. The local branded consumer food (BCF) group business grew net sales by 24.1 percent year-on-year to P52.35 billion while the international branded consumer food business expanded by 7.8 percent to P23.78 billion.
On the other hand, non-branded consumer foods group posted a 2.9 percent decline in net sales due to lower sugar volumes. Operating income for the fiscal year amounted to P14.12 billion, up by 37.4 percent versus last year. Operating income margins expanded by 259 basis points versus the previous fiscal year due to lower average prices of commodity inputs, managed operating expenses and additional scale for branded foods.
Growth in net profit (15.2 percent) was slower than the rise in operating income (37.4 percent) as the company booked lower non-recurring gains. URC liquidated most of its bond and equity holdings in the prior year, making its earnings less susceptible to financial market volatility moving forward.
For the fiscal year, the BCF group excluding the packaging division increased sales by 18.5 percent year-on-year to P76.13 billion. All segments contributed to the growth led by the beverage division, which grew by 38 percent year-on-year driven by the double digit growth from URC’s coffee and ready-to-drink (RTD) tea drink businesses. Snack food sales grew by 16 percent as salty snacks, bakery, and confectionery segments all posted growth.
Meanwhile, BCF International posted a 7.8 percent growth in net sales to P23.78 billion for the fiscal year, driven by Thailand and Vietnam.
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