URC nets P3.89 billion in 2009

MANILA, Philippines - Universal Robina Corp. (URC), the food manufacturing  arm of Gokongwei holding firm JG Summit Holdings Inc., posted a net income of P3.89 billion in its fiscal year ending September last year, more than 10 times the previous level.

In a financial report submitted to securities regulators, URC said the significant jump in its net earnings was due to higher operating income, mark-to-market gain in bond and  equity holdings as a result of recovery of market prices during the first half of 2009 and lower foreign exchange loss.

From a loss of P40 million in 2008, minority interest in net income of subsidiaries grew to P220 million due to higher net income of 77 percent-owned URC Internatioal on the back of increased earnins inVietnam, Thailand and Malaysia.

Consolidated sale of goods and services rose 11 percent to P50.45 billion from P45.45 billion a year earlier.

URC’s branded consumer foods segment registered sales of P38.1 billion or an increase of 14.5 percent from P33.26 billion. The growth was attributed to the 10.7 percent  increase in net sales from domestic operations which was largely driven by the strong performance of its snack foods, which posted a 12.4 percent increase on the back of price increases implemented during the period under review.

Beverage sales value went up 2.9 percent due to higher sales volume of coffee and juice products while sales of grocery products improved 8.9 percent to P2.97 billion due to strong noodles sales. Export and food service also posted an aggregate 36.6 percent   growth in sales value due to increased sales volume of exports coupled by higher selling prices.

International sales of URC’s branded consumer foods business jumped 24.4 percent to P11.53 billion from P9.27 billion on the back of a 34 percent jump in sales volume. This was supported by higher revenues from Singapore, Hong Kong and Vietnam.

The group’s packaging division, on the other hand, reported a 29.2 percent dop in sales to

P1.06 billion from P1.5 billion owing to lower sales volume and commodity prices  worldwide.

URC’s agro-industrial segment chipped in sales of P5.85 billion, an improvement of 4.9

percent from P5.57 billion. Feed sales declined 1.2 percent to P2.74 billion due to  increase in internal transfers to farms and as hog and poultry raisers contended

with the rising feed costs in the first quarter of 2009.

Farm business, on the other hand, grew 11 percent to P3.11 billion due to higher sales volume and prices of hogs and increase in sales of commercial table eggs and broiler.