URC profit flat in Q1 but sales picked up
Gokongwei-led food and beverage giant Universal Robina Corp. (URC) said profit was flat at P3.6 billion in the first quarter of 2023 while revenues sustained gains due to robust demand.
“We are pleased that we were able to pick up where we left off in 2022 and continue our strong performance into the first quarter of 2023, despite inflationary pressures on consumer demand and continuing volatility on input costs,” URC president Irwin Lee said in a statement.
URC, part of the Gokongwei family conglomerate JG Summit Holdings, said sales from January to March this year climbed 11 percent to nearly P40 billion as “all businesses delivered strong growth.”
Operating income also expanded by 15 percent to P4.7 billion.
“Margins expanded versus last year and versus last quarter, growing with the full year impact of the pricing moves done last year, coupled with optimization initiatives implemented to manage operating expenses,” the company said.
URC’s domestic and international branded consumer foods group, which excludes packaging, booked P26.9 billion in sales during the quarter.
Philippine branded food revenues during the period grew 6 percent to P18.1 billion as sales reached a record high for the month of March.
International branded food sales also climbed 13 percent to P8.9 billion.
“Vietnam, Malaysia and Myanmar showed strong performance with growth at double digit rates,” URC said.
It said agroindustrial and commodities sales reached P12.4 billion, up 20 percent. This was driven by sugar and renewables. The unit also saw a boost from higher selling prices and strong feeds sales.
“We believe that with the strength of our brands and continuous improvements in our operations, we will be able to sustain this momentum,” Lee said in the statement.