Gokongwei's URC to Exit Chinese Market

Gokongwei-run Universal Robina Corporation (URC) is ceasing the manufacturing and sales of its products in China, as it is set to bid farewell to the Chinese market next year.

In its stock exchange disclosure, the listed food manufacturer did not specify the reason behind its exit, but said it is preparing to reallocate its resources to faster-growing markets in Asia. 

ALSO READ

Lance Gokongwei Steps Down as Robinsons Retail's Chairman

Gokongwei-Led JG Summit's Net Income Triples in First Quarter of 2024

“This will allow URC to redeploy resources to higher-growth markets across the region,” it said in a statement.

URC operates cereals and snacks businesses in China. According to the company, several Chinese entities have likewise stopped operating in the East Asian country as of the second quarter.

“As a result, the related income and expenses of these entities for the period are presented as net income from discontinued operations in the consolidated income statements,” it said.

Currently, URC has a presence in Hong Kong, Indonesia, Malaysia, Myanmar, Singapore, Thailand, and Vietnam, in addition to the Philippines.

The company reported sales amounting to P80.7 billion from January to June, up by three percent from the same period in 2023, with all of its business units contributing to the spike. Its net income increased by eight percent to P7.6 billion, while its core net income grew by five percent to P6.7 billion.

“Against a challenged macroeconomic landscape, URC delivered volume-led growth and strong profits,” URC president and chief executive officer Irwin Lee said. “The strength of our wide portfolio allows us to continue delighting our consumers with good food and beverage choices while enabling us to reward shareholders with steadily increasing dividends.”

“We look forward to the continued recovery of consumer sentiment in the balance of the year,” added Lee.

Meanwhile, URC declared a P1.90 per share dividend to stockholders on record as of August 30, with payout set for September 25. This marks a five percent increase in its yearly dividend over the past four years.

URC is owned by the Gokongwei Group. It is one of the largest branded consumer food and beverage product companies in the Philippines, with a growing presence in ASEAN. The brand not only specializes in the production and distribution of snacks and beverages, but also in those of commodities such as sugar and flour, as well as agro-industrial products like hogs and animal feed.

Summit Media, which publishes Esquire Philippines, is among the business units under the Gokongwei Group.