Offshore businesses buoy URC bottom line

INQUIRER FILE PHOTO

Gokongwei-led snack food maker Universal Robina Corp. (URC) saw its earnings grow by 11 percent to P9.2 billion in the January to September period, buoyed by slight growth across its business units.

In a stock exchange filing on Tuesday, the maker of V-Cut potato chips and C2 green tea said the climb was tempered by higher tax provisions and finance costs.

Sales at the branded consumer foods (BCF) segment inched up by 2 percent to P81.8 billion.

READ: URC to exit China; posts slight earnings growth in H1

The domestic market was flat at P55.9 billion amid the decline in the coffee and confectionery business, albeit offset by the ready-to-drink beverages and bakery units.

Despite weak consumer sentiment globally, BCF International grew by 9 percent to P25.9 billion as its business units booked volume and value growth.

Meanwhile, the agro-industrial and commodities group went up by 2 percent to P36.2 billion during the period, with growth tempered by price adjustments.

Revenues were likewise affected by a decline in hog feed volumes, URC said, “as the country’s hog population continued to be affected by disease outbreaks.”

Despite tempered growth, URC president and CEO Irwin Lee said they were optimistic about resilient consumer spending in 2025.

“We will continue providing accessible choices to everyone across price points and trade channels, as we believe that everyone deserves to be delighted with good food choices,” Lee said in a statement.

URC previously announced its exit from the China market by next year to shift focus on other Asian markets.

The company said this would allow it to “redeploy resources to higher-growth markets across the region,” although it did not specify its target markets. ­—Meg J. Adonis