Universal Robina Corp. (URC), the food business of the Gokongwei group, reported Thursday that its net income for the first half ending June reached P6.91 billion, a 10 percent increase from the P6.27 billion recorded in the same period last year. Total revenues for the six-month period also rose 4 percent to P89.33 billion from P85.88 billion a year earlier.
The company said growth was driven by its branded businesses as well as its animal nutrition and health division, while the continued expansion of its flour operations also boosted overall results. “Our second quarter performance demonstrates the strength and balance of our portfolio. More importantly, we were able to manage disruption and cost impacts triggered by the ongoing conflict in the Middle East,” said URC president and CEO Irwin Lee. He noted that while geopolitical tensions and inflation remain risks ahead, the company’s strong brands, wide distribution network, solid customer ties and efficient operations allow it to adapt and keep its competitive edge amid uncertain conditions.
For the second quarter alone, net income jumped 32 percent to P2.93 billion from P2.21 billion the prior year, even though revenues increased only 2 percent to P41.65 billion from P40.62 billion. Branded consumer foods posted quarterly sales of P29.4 billion, up 4 percent year-on-year. Sales in the Philippines grew 3 percent to P20.1 billion, led by bakery products and powdered beverages, with the latter supported by price adjustments made last year and improved production costs. International sales rose 8 percent in peso terms but fell 2 percent when adjusted for currency changes, as gains in Vietnam and Malaysia were offset by weaker demand in Thailand and adjustments to the Cambodia business following tensions along the Thai-Cambodia border. Agro-industrial and commodities sales reached P12.1 billion, down 3 percent due to lower sugar volumes and softer market prices, though earnings from this segment still rose 7 percent as strong profit growth from the expanding Sariaya flour plant offset the challenges in sugar operations.
