URC posts 15.2% rise in profit

Universal Robina Corp. (URC) chalked up a net profit of P11.65 billion in fiscal year ending last September—15.2 percent higher year-on-year, as the company expanded its branded consumer food business here and abroad.

In a disclosure to the Philippine Stock Exchange Wednesday, the company of the Gokongwei group 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, the non-branded consumer foods group posted a 2.9-percent decline in net sales.

Operating income for the fiscal year amounted to P14.12 billion—up by 37.4 percent from that of the previous year.

The growth in net profit was slower than the 37.4-percent rise in operating income as the company booked lower non-recurring gains. The previous year, URC liquidated most of its bond and equity holdings.

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. Snack food sales grew by 16 percent.

Meanwhile, BCF International posted a 7.8-percent growth in net sales to P23.78 billion for the fiscal year.

The company reported that business in Thailand managed to grow despite weak consumer sentiment brought on by the country’s political issues. Vietnam, on the other hand, posted modest growth, bucking the decline in the country’s total fast moving consumer goods (FMCG) industry, as new product offerings gained traction.

In Indonesia, URC posted an 11-percent growth in core snack foods on the back of robust sales of such brands as Piattos and Cloud 9.

Meanwhile, URC’s non-branded consumer foods business—composed of the commodity foods and agro-industrial groups—posted net sales of P15.14 billion for the year, as sales declined by 2.9 percent. Sales of the commodity foods group slipped by 15.4 percent year-on-year to P6.94 billion.

The flour business grew by 4.8 percent due to higher volumes. The sugar business posted a decline of 34.1 percent. URC’s agro-industrial segment ended the fiscal year with P8.20 billion in net sales, an 11-percent increase from that of the previous year. Growth was driven by the farms business, which expanded by 11.2 percent. The feed business also improved by 10.6 percent.