Gokongwei-led snacks and beverage giant Universal Robina Corp. (URC) saw profits drop 11 percent to P9.35 billion in the January to September period in the absence of gains from the sale of land.
At the same time, revenues from its branded food products and commodities saw robust growth, jumping by 26 percent to P107.9 billion during the period.
Removing the impact of asset sales, URC said “core” income would have risen 9 percent versus the same period in 2021.
“We are delighted by the continued growth momentum over the last nine months. We will continue to execute our plans to keep our margin recovery on track despite the challenges on all fronts, notably inflationary pressures from volatile commodity costs and the strength of the US dollar,” Irwin Lee, URC president and CEO, said in a statement.
“We remain confident that the strength of our core products, along with our successful new launches, will continue to provide value for our consumers and drive growth into 2023 and beyond,” he added.
Operating income for the nine-month period grew by 10 percent to P10.8 billion.
Price increases
URC, which is part of the Gokongwei family conglomerate JG Summit Holdings, said gains were driven by “higher sales volumes, programmed price increases and executed cost savings initiatives.”
The company, which manufactures Chippy and C2 iced tea, noted branded food sales jumped 30 percent to P78.4 billion. Its branded consumer food segment “continued to break sales records, once again posting its highest monthly and quarterly sales in history for the third quarter in a row.”
Revenues during the period also rose 22 percent to P54 billion with the international business alone rising 51 percent to P24.4 billion.
Agroindustrial and commodity sales, led by feeds and pet foods, expanded by 15 percent to P28 billion.
“The commodities group of flour, sugar and renewables also grew overall sales due to higher prices, but declined in volumes due to supply challenges brought about by the global wheat market volatility, more severe typhoon impacts and lower milling outputs,” URC said.