URC profit flat in Q1

MANILA, Philippines — Universal Robina Corp. (URC) reported flat earnings in the first quarter of 2023 at P3.4 billion, due to higher financing costs and non-cash impairment on the farms business.

However, core net income was up 11 percent compared to the same period last year.

Sales amounted to P39.8 billion, 11 percent higher than the previous year.

All businesses delivered strong growth despite the continued elevated inflation rates across the region.

Operating income for the first quarter grew faster than topline, increasing by 15 percent versus the same period last year to hit P4.7 billion.

URC president and CEO Irwin Lee said the company was able to sustain its growth momentum last year.

“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. We believe that with the strength of our brands and continuous improvements in our operations, we will be able to sustain this momentum,” he said.

The domestic and international branded consumer foods (BCF) group, excluding packaging, recorded sales of P26.9 billion for the first quarter.

BCF Philippines finished the quarter strong, with revenues growing by six percent versus the same period last year to P18.1 billion, its highest ever sales in March.

The international group grew by 13 percent to P8.9 billion. Vietnam, Malaysia and Myanmar showed strong performance with growth at double digit rates.

Similarly, the Agro-Industrial & Commodities (AIC) divisions recorded P12.4 billion in revenue, up 20 percent versus same period last year, driven by the sugar and renewables on the back of higher selling prices and strong feeds sales.

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