URC delivers strong Q2 performance

MANILA, Philippines — Gokongwei-led food and beverage company Universal Robina Corp. (URC) delivered a strong second quarter performance, with core net income attributable to parent rising by 10 percent to P2.9 billion on the back of disciplined financing cost management and better sales.

URC’s net income from continuing operations during the three-month period reached P3 billion, up by 25 percent year-on-year.

Sales improved by two percent during the quarter to P41.5 billion, bringing first half revenue growth to four percent.

URC attributed the growth in sales to the company’s branded businesses, particularly branded consumer foods (BCF) and animal nutrition and health, supported by resilient core demand and sustained brand investments.

BCF posted P29.4 billion in sales for the quarter, up by four percent year-on-year.

URC said the continued scale-up of the flour business also contributed positively to its overall performance.

Its agro?industrial and commodities segment saw sales slip by three percent to P12.1 billion as growth in animal nutrition and health, as well as flour, was offset by lower sugar volumes and softer market prices.

Flour sales increased by eight percent, while animal nutrition and health sales surged by 20 percent, driven by hog feeds, cat petcare and featherlines.

Overall, URC president and CEO Irwin Lee said the company’s second quarter performance demonstrates the strength and balance of its portfolio.

“Growth from our branded consumer and animal nutrition businesses, alongside improving contributions from flour, enabled us to deliver on our plans despite the anticipated softness in sugar. More importantly, we were able to manage disruption and cost impacts triggered by the ongoing conflict in the Middle East,” Lee said.