Universal Robina H1 profit slowed, but sales hit historic high

Gokongwei-led snacks and beverage giant Universal Robina Corp. (URC) saw profits dip to P6.5 billion during the first half of 2022, while sales touched a “record high” amid rising prices.

The maker of Chippy and C2 iced tea saw net income drop 23.5 percent in the first semester in the absence of nonrecurring property sales.

Nevertheless, URC underscored end-June net sales of P71.1 billion, up 23 percent, on the strength of branded consumer foods, agroindustrial and commodities, as driven by “higher selling prices.”

“We are very pleased to see the strong performance of the business as we exit the first half of 2022 with record high sales,” URC president and CEO Irwin Lee said in a statement.

URC said operating income during the period rose 2 percent to P7.4 billion. It said “absolute profits were recovered as planned despite material cost increases and the strengthening of the US dollar.”

Branded consumer foods, both in the domestic and international segments, saw first semester sales jump 27 percent to P50.7 billion.

Despite tighter cane supply

Domestic revenues rose 20 percent to P35.1 billion, the company’s “highest monthly and quarterly sales in history.” International sales were likewise up 43 percent to P15.6 billion.

“Consumption and demand signals remain strong, with most categories exhibiting strong double-digit growth,” URC explained in the statement.

Sales of its agro-industrial and commodities segment also increased 15 percent to P19.4 billion.

“All business units saw [a] double-digit growth [of the] top line, driven by higher selling prices. Sugar and renewables posted strong growth despite lower output caused by tighter cane supply in the country,” URC said.

It added that gains were supported by its pet foods business, which continued to “outperform.”

“We anticipate sales momentum to be maintained as consumer demand continues to be resilient across the region,” said Lee, who added:

“[We] are closely watching demand signals given the inflationary environment. As we continue to navigate global headwinds, we remain confident that we will be able to continue increasing our absolute profits as we couple strong top line growth with our reinforced cost savings initiatives,” he added. INQ