URC nets P3B

Gokongwei-led regional industrial powerhouse Universal Robina Corp. saw a 12.4-percent year-on-year drop in first quarter net profit to P2.95 billion mostly due to slower domestic snacks and coffee businesses.

URC generated consolidated sales of P31.19 billion for the first quarter, up by 1.6 percent from the same period last year.

Domestic operations at its branded consumer food group business saw a 4.6-percent year-on-year decrease in net sales to P14.34 billion for the first quarter. This was driven by the “underperformance of snacks and total beverages as a result of lower volume and unfavorable mix in the coffee category,” URC disclosed to the Philippine Stock Exchange on Monday.

“Operating income and margin pressure remains challenged with a decline of 14 percent amounting to P3.5 billion due to the weaker performance in the Philippines as a result of lower coffee sales volumes, higher inflation, and forex (foreign exchange) devaluation,” the company added.

On the other hand, international operations at its branded consumer food business grew net sales by 9.6 percent year-on-year to P10.77 billion in the first quarter. In US dollar terms, offshore sales increased by 6.5 percent to $209 million for the first quarter of 2018 against the same period last year.

Top-line growth from the overseas business came from Vietnam, Malaysia and Australia.