Sale of Oceania business lifts Universal Robina profits in 2021

MANILA, Philippines — Universal Robina Corp. doubled its earnings haul last year despite the prolonged pandemic after the company reinvested in its Southeast Asia business the proceeds from the sale of its Oceania unit.

In a disclosure sent to the Philippine Stock Exchange on Monday, the Gokongwei-led company reported its net income shot up 109% year-on-year to P24.3 billion in 2021.

Excluding its Oceania segment, which included business in Australia and New Zealand, the food and beverage giant reported sales expanded 3% to P117 billion last year. In the final quarter of 2021, the company's sales inched up 12% from the previous quarter.

"While the challenges and uncertainties of hyper cost inflation, global climate and political turbulence persist, our growth momentum and organizational commitment to excellence give us cause for optimism in 2022," said Irwin Lee, company president and chief executive.

"We will continue to invest in our brands, build channel strength, make future bets in attractive white spaces, and operate efficiently and sustainably, all towards future-proofing our growth," Lee added in their statement.

Operating and net income both fell 8% year-on-year in 2021 as commodity prices push production prices up.

Broken down, sales landed flat at P83.5 billion last year, as sales in key food and beverage markets still figured below pre-pandemic levels as it struggled to make headway against pandemic curbs for most of 2021. In the Philippines, revenues fell 2% on an annual basis to P61.4 billion. Sales within its international segment grew 5% year-on-year to P22.2 billion despite regions struggling with quarantine restrictions in the second half of 2021.

URC's Agro-Industrial & Commodities division reported marginal improvements as well. Sales within this segment rose 13% tear-on-year to P33.4 billion. The segment expanded on the back two significant purchases located in Negros Occidental: Central Azucarera de La Carlota sugar mill and Roxol Bionergy, a distillery complex that produces bioethanol fuel products from sugarcane and related raw materials, among others.

Its Pet Food segment grew as well, which cushioned the drop of its farms and feed volumes due to lower hog populations decimated by the African swine fever epidemic around the country in 2021.