Regional industrial powerhouse Universal Robina Corp. has set aside P7.2 billion for capital spending this year, mostly to improve logistics and build new capacity for its food business across the region.
Based on a regulatory filing, the budget for the Gokongwei-led food and beverage group’s capital outlay this year was 7.8 percent lower than the capital expenditures last year.
In 2016, URC reported that it had spent P7.81 billion for the following: Site development and building constructions; installation of new wafer and coffee mixing lines; rehabilitation/upgrade of beverage facilities in the Philippines; construction of warehouse and coffee manufacturing facilities in Vietnam; new warehouse, improvements in the biscuit and wafer lines and Griffin’s packaging conveyor in Thailand; additional Nice n Natural bar line; machine upgrades and building and traffic management improvements in New Zealand; warehouse construction and biscuit line installation in Burma (Myanmar).
For 2017, bulk of URC’s capital spending budget amounting to P4.8 billion was set aside for the branded consumer business, which includes expansion of capacity and improvement of handling, distribution and operational efficiencies of new lines for brands Nips, Conbar and Cannister.
For its offshore consumer business, URC is also investing in a new factory building in Malaysia, a new candy plant in Thailand, a new biscuit line in Indonesia, a bottle-making equipment for its Vietnam beverage business, and a “mega” distribution center warehouse and new raw material and packing material warehouse in the Philippines.
Likewise, part of this year’s budget is the P1.45 billion allotted for the commodity foods group. This was earmarked for the construction of a flour mill, a sugar business expansion and maintenance capital expenditures.
URC is also spending P950 million for its agro-industrial group, particularly for sow level expansion, farm improvements and handling facilities for the feeds division.
In its fiscal year ending September 2016, the company had total assets amounting to P141.44 billion. Book value per share increased to P34.06 from P29.92 a year ago.