URC core earnings tumble by 3% in 2024

MANILA, Philippines — Gokongwei-led food and beverage firm Universal Robina Corp. (URC) saw core earnings slipped by three percent to P12.2 billion in 2024 on the back of lower profits from sugar and renewables businesses.

Sales of the company, however, improved by three percent year-on-year to P161.9 billion, fueled by volume growth across all divisions.

The branded consumer foods (BCF) group, excluding packaging and China, generated sales of P109.5 billion in 2024, up by two percent year-on-year.

BCF Philippines sales reached P74.7 billion, with most categories posting both volume and value growth, offsetting challenged segments.

URC said that value-for-money segments continued to rise faster than the rest of the portfolio given the challenging macroeconomic environment faced by consumers.

BCF International, on the other hand, recorded an eight-percent jump in sales to P34.8 billion, with all business units delivering strong volume and value growth despite the generally tepid consumer sentiment seen across Southeast Asia.

URC’s agro-industrial and commodities group, meanwhile, booked P51.3 billion in sales, up by five percent year-on-year, driven by higher volumes across most of its segments which offset competitive price adjustments in feeds and flour.

“We delivered strong cash generation and dividend growth while pivoting to stronger volume growth recovery, as consumer sentiments improve after absorbing multi-year inflationary pressures,” URC president and CEO Irwin Lee said.

“We expect further improvements in URC’s growth momentum going forward as we continue to provide new product innovations and better value offers to delight our customers and consumers with good food choices,” Lee said.

URC is one of the Philippines’ largest food and beverage companies, producing iconic brands such as Great Taste, C2 Cool & Clean, Piattos, Maxx candy and Cream-O cookies.

It also has a significant and growing presence in ASEAN, with leading regional brands such as Lexus, Tivoli and Fun-O.