URC net income surged 47% to P4.79B

GOKONGWEI-LED Universal Robina Corp. grew its net profit in the quarter ending December 2015 by 47.3 percent year-on-year to P4.79 billion as higher sales sales of branded food here and abroad were complemented by the sugar, renewable energy and feeds businesses.

The growth in net profit outpaced the 16.1-percent rise in operating income as URC booked foreign exchange and mark-to-market valuation gains on financial assets from a debt-hedging mechanism used by New Zealand unit Griffins.

Operating income nonetheless increased as better cost management and lower input prices—such as for palm oil, creamer, robusta bean and PET (polyethylene terephthalateresin)—boosted margins for branded foods.

In a disclosure to the Philippine Stock Exchange on Friday, URC reported a sales growth of 11.3 percent for the first three months of fiscal year 2016 (ending September) with net sales amounting to P29.99 billion. The strong sales were mainly driven by branded foods and complemented by sugar/renewables and feeds. Doris Dumlao-Abadilla