Universal Robina Corp. (URC) sales for the year ended 31 December 2023 reached P158.4 billion, up 6 percent against a high base last year. Both the branded consumer foods (BCF) and the agro-industrial & commodities (AIC) businesses continued their momentum into the fourth quarter, growing sequentially versus the previous quarter.
Operating income for the full year grew 14 percent vs. last year, more than double top line growth, to close at P17.4 billion. Operating margins continue to expand, hitting 11 percent, driven by the company’s strategic pricing moves and continued operational savings. Net income for the full year ended at P12.8 billion, down 12 percent vs. the same period last year, due to higher comparables from gain on land sale last year. URC’s core net income increased by 6 percent to P12.6 billion, driven by operating income growth but tempered by higher interest rates.
URC’s financial position remains strong, with a healthy cash balance of P12.2 billion, net debt of P13.4 billion, and a gearing ratio of 0.23.
Sales by the BCF group, excluding Packaging, ended at P108.4 billion for the year, growing 2 percent vs. the same period last year. BCF Philippines grew 3 percent vs. the same period last year and sequentially vs. the prior quarter, delivering P75.6 billion in revenue. Categories showed mixed performance, with Snacks and Ready-to-Drink beverages driving growth, offsetting challenges in some segments.
BCF International closed the year at P32.8 billion in revenue, growing by 2 percent vs. the same period last year, on the back of the performance of Vietnam and Malaysia. Sequential quarter-on-quarter growth was seen in Thailand and Indonesia as they recovered from price corrections executed earlier this year.
The Agro-Industrial & Commodities group continued to outperform, ending the year at P48.8 billion in sales, up 16 percent vs. the same period last year. All three businesses – Agro-Industrial Group, Sugar and Renewables, and Flour – maintained their double-digit growth driven by higher volumes, favorable sugar prices, and continued growth of Pet Food.
Irwin Lee, URC president and CEO, said, “Over the past few years the company has made purposeful strategic decisions to enter new segments outside our core categories in the Philippines and to build new legs in International, all of which we are seeing come to fruition. We have also continued to make good progress in our fuel for growth program, surpassing our initial commitments on operational efficiencies and savings. These initiatives will allow us to continue delivering on our mission – to provide our consumers with good food and beverage choices for the years to come.”
