Universal Robina Corporation is aiming for mid-single-digit revenue growth this year despite concerns over global uncertainties, including tensions in the Middle East.
URC said weaker sugar prices are expected to continue hurting its commodities business after affecting first-quarter earnings. Company official Juan Miguel T. Manalang said sugar prices could rise in the next crop year due to higher fertilizer and diesel costs, as well as the possible impact of El Niño on farm productivity.
The company is also watching the effects of the US-Iran conflict, which may disrupt logistics and increase costs of raw materials and transport. URC said it is managing these risks by diversifying suppliers, monitoring shipments closely, and maintaining buffer stocks.
URC warned that higher oil prices could fuel inflation and weaken consumer spending. To manage rising costs, the company has started implementing selective price increases this month, especially in categories where it has strong market leadership.
However, URC said it remains cautious in adjusting prices for products aimed at budget-conscious consumers.
