URC posts P5.4-B H1 income

Universal Robina Corp. (URC) grew its first semester net profit by 9 percent year-on-year to P5.4 billion, led by the continued recovery of the domestic coffee business after a three-year slump.

URC posted net sales of P67 billion, marking a 4 percent increase versus the same period last year, driven by the strong growth in the Philippine consumer food business. Margins improved across consumer, industrial and international divisions.

Six-month operating income, excluding hogs market valuation, grew by 8 percent year-on-year to P7.6 billion, with margins improving by 41 basis points versus last year.

“We are pleased that our top strategic priority to pivot our Philippines branded consumer foods division back to strong growth continues to be on track. The route-to-market and product supply chain transformation programs we identified and addressed the past year have started to bear fruit; but we need to continue our focus on perfect execution,” URC president Irwin Lee said in a press statement.

Sales of domestic and international branded consumer foods grew by 4 percent versus the same period last year, amounting to P51.5 billion.

Domestic revenues increased by 10 percent while operating income rose by 15 percent. This was led by double-digit growth in coffee, snacks and joint venture businesses. International revenues declined by 4 percent in peso terms due to adverse foreign exchange translation, but international operating income still grew by 2 percent versus last year as margins expanded by 46 basis points despite weaker topline.  —DORIS DUMLAO-ABADILLA