Universal Robina Corp. reported a 2 percent drop in net income for the first quarter to P3.97 billion from P4.05 billion a year earlier, despite higher sales driven by strong demand across its food businesses.
The Gokongwei-led food company said revenues rose 6 percent to P47.87 billion, supported by volume-led growth in its branded consumer foods business in the Philippines, as well as stronger contributions from its animal nutrition and flour divisions.
Branded consumer foods generated P32.2 billion in sales in the quarter ending March. Domestic sales increased 10 percent to P22 billion due to higher volumes and the continued effect of last year’s price increases.
International sales climbed 6 percent to P10.2 billion, led by strong demand in Malaysia, particularly from the Munchy’s business.
URC president and CEO Irwin Lee said the company started the year with strong growth led by its Philippine branded consumer foods segment. He added that URC is balancing demand support with efforts to recover margins while monitoring possible inflationary effects from the Middle East conflict.
The agro-industrial and commodities business posted flat sales of P15.7 billion. Animal nutrition sales grew 22 percent, while flour sales rose 17 percent as production from the new Sariaya flour mill increased.
However, gains were partly offset by weaker performance in the sugar and renewables business due to lower distillery utilization rates.
URC said it remains the country’s largest sugar miller by capacity, supported by its 2020 acquisition of sugar assets from Roxas Holdings Inc. in La Carlota City. The company also acquired idle sugar milling equipment from Central Azucarera Don Pedro Inc. in Balayan in 2023 to improve operational efficiency and expand capacity.
