MANILA, Philippines — Gokongwei-led snack foods giant Universal Robina Corp. (URC) saw its net income decline in 2023 despite maintaining strong sales.
URC reported a 12-percent drop in its net income to P12.8 billion in 2023 from P14.5 billion in 2022.
The decrease was attributed to higher comparables from gain on land sale in 2022.
Core net income of the company, however, rose by six percent to P12.6 billion on the back of operating income growth.
URC’s sales in 2023 stood at P158.4 billion, up by six percent against a high base the previous year.
The company said both its branded consumer foods (BCF) and the agro-industrial and commodities (AIC) businesses sustained momentum into the fourth quarter, growing sequentially versus the previous quarter.
BCF group sales, excluding packaging, improved by two percent year-on-year to P108.4 billion.
URC said categories showed mixed performance, with snacks and ready-to-drink beverages driving growth, offsetting challenges in some segments.
Strong results from Vietnam and Malaysia boosted revenues of BCF International, closing the year at P32.8 billion, up two percent year-on-year.
Meanwhile, the AIC group ended the year with a 16-percent growth in sales at P48.8 billion.
Higher volumes, favorable sugar prices and continued growth of pet food enabled all of the group’s three businesses – agro-industrial group, sugar and renewables and flour – to maintain double-digit growth.
“Over the past few years the company has made purposeful strategic decisions to enter new segments outside our core categories in the Philippines and to build new legs in International, all of which we are seeing come to fruition,” URC president and CEO Irwin Lee said.