URC nets P7.2 billion in 9 months

MANILA, Philippines — Universal Robina Corp. (URC), the Gokongwei-owned snacks food giant, has reported a net income of P7.2 billion in the nine months to September, up four percent from the previous year.

In the third quarter alone, the company reported a net profit of P1.9 billion, down from P2 billion a year ago. 

Revenue increased by five percent to P99 billion.

“Domestic and international branded consumer foods grew by four percent versus the same period last year, amounting to P79 billion,” URC said.

Domestic revenue increased nine percent and operating income rose 13 percent driven by double-digit growth of Great Taste coffee, Nissin and Payless noodles, acceleration of Jack n’ Jill snacks and C2 ready-to-drink tea.

Contributions from the joint venture businesses with Danone and Vitasoy also boosted sales.

On the other hand, international revenue declined three percent to P31.1 billion due to adverse foreign exchange translation. 

URC said 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 seven percent.

Similarly, the agro-industrial and commodities businesses continue to be a relevant and consistent contributor to URC. 

“Nine-month sales amounted to P20.8 billion, a nine percent increase versus last year, while operating income grew by three percent,” URC said.

The agro-industrial group alone posted an 18 percent growth in sales, driven mainly by strong growth in animal nutrition and health or the animal feeds and pet foods business. 

Likewise, the commodities foods group recovered in terms of topline, with flour posting a healthy 17 percent sales growth.

This offset the five percent decline from the sugar and renewables business.