URC Improves Q3 Profits to P7.3 Billion
Universal Robina Corporation (URC) improved its net income in the third quarter of 2019 to P7.2 billion, equivalent to four percent growth year-on-year during the nine-month period. The Gokongwei-led company attributed the growth to “higher operating income offset by adverse foreign exchange impacts.”
The company’s net sales also saw a significant improvement, reaching P99.8 billion, equivalent to five percent improvement from the same period last year. Meanwhile, URC’s domestic and international consumer foods’ net sales rose to P79 billion, four percent higher than last year’s.
According to URC, double-digit growths driven by its top brands such as Great Taste Coffee, Nissin, Payless, Jack n’ Jill, and C2 translated to a nine percent uptick in domestic revenues and 13 percent increase in its operating income.
URC’s Internal Revenues Drop by 3 Percent
While URC’s overall performance has a rosy outlook, its internal revenue still has room for few improvements. According to URC, its internal revenues dropped three percent to P31.1 billion, citing “adverse foreign exchange translation.”
“On a constant currency basis, underlying international sales were up modestly, led by growth in Oceania, Myanmar and Vietnam. International operating income, on the other hand, still grew by seven percent versus last year as margins expanded by 80 bps,” URC said in a CNN report.
Agro-Industrial, Commodities Sales Up
Part of the company’s growth drivers is its agro-industrial and commodities unit, which posted a three percent increase in operating income in the third quarter. Sales from the unit reached P20.8 billion, which is nine percent higher than last year’s. Meanwhile, sales from the unit was 18 percent higher, driven by robust demand for animal feeds and pet foods.
Its commodities division also saw a significant growth led by flour sales, which posted 17 percent growth. However, sugar and renewables sales went down by five percent. URC attributed the slowdown to “later importation scheduling and phasing versus last year of refined sugar.”