URC nets 3% more in Q1

MANILA, Philippines — Universal Robina Corp. (URC), the Gokongwei-led snack foods giant, grew its net income in the first quarter by three percent, marking a good start after experiencing a challenging business environment the past years.

It posted a net income of P3.1 billion on the back of a positive operating income which grew 10 percent to P4 billion, the company said in a disclosure yesterday.

URC said the increase  was driven by higher sales volumes and average selling prices.

Irwin Lee, URC president and chief executive officer,  said the company’s recovery efforts have gained traction.

“We are very pleased with the results especially the stronger top line momentum coming from our businesses in the Philippines. While the environment continues to be very challenging, the transformation plans we have set in place have started to gain traction.

The entire URC team is now heavily focused on execution with the aim of sustaining what we have achieved for the balance of the year and beyond. We also expect to hold or slightly improve our operating margins for the year,” Lee said.

The company registered net sales of P33.3 billion, up seven percent.

Across the different segments, the branded consumer foods (BCF)  group registered a five percent increase in sales, in both local and international operations, to P25.7 billion.

Domestic revenues increased 11 percent to P15.6 billion, driven by the good performance of all categories, with coffee pivoting back to growth after three years of decline.

On the other hand, international sales declined three percent in peso terms amounting to P10.2 billion, driven by foreign exchange devaluation in Australia and New Zealand ranging from  eight to 10 percent.

The agro-Industrial and  commodities segment continued to be a relevant and consistent contributor to total sales.

Sales grew 16 percent to P7.2 billion, while operating income grew 17 percent to P1.4 billion.

Agro-industrial sales rose 21 percent, driven mainly by higher feeds sales.

The commodities division grew 13 percent with the flour and pasta segment posting 25 percent growth on higher volumes.

Sugar and renewables achieved a nine percent topline growth as a result of higher selling prices.