UNIVERSAL Robina Corp. (URC) reported a three percent increase in attributable profit in the first three months of 2019, as sales volume and average selling prices improved during the period.
In a regulatory filing, the Gokongwei-led food and beverage manufacturer said net income attributable to the parent reached P3.04 billion in the first quarter, following a seven percent uptick in net sales to P33.3 billion.
“We are very pleased with the results especially the stronger top line momentum coming from our businesses in the Philippines. While the environment continues to be very challenging, the transformation plans we have set in place have started to gain traction,” URC President and Chief Executive Officer Irwin C. Lee said in a statement.
“We also expect to hold or slightly improve our operating margins for the year,” Mr. Lee added.
The listed firm’s business is divided into three units, namely branded consumer foods (BCF), agro-industrial group (AIG), and commodities group (CG).
Sales of BCF, which includes both domestic and international products, went up by five percent to P25.7 billion. Its products include Great Taste for coffee, Jack ‘N Jill for snacks, and Nissin for easy-cook noodles, among others.
Domestic revenues alone jumped by 11% to P15.6 billion, thanks to the coffee category which reversed its three-year decline. Overseas, sales dropped by three percent in peso terms to P10.2 billion, mostly due to the foreign exchange devaluation in Australia and New Zealand ranging from 8% to 10%.
For AIG, sales of goods and services rose by 21% to P2.58 billion, driven by the 53% increase in the feeds business due to higher volumes and selling prices. This managed to offset the 14.1% slowdown in farms as volumes fell.
The commodities division, meanwhile, firmed up by 13% to P4.05 billion, driven by flour and pasta sales which grew by 25% on increased volumes. The sugar and renewables unit, meanwhile, posted a 9% jump in its topline because of higher selling prices.
The company noted that its cash balance stood at P10.1 billion by the end of the quarter, while tallying a net debt position of P30.9 billion, attributed to remaining debt from its previous acquisitions.
Mr. Lee also highlighted the company’s sustainability initiatives, which includes reducing the company’s energy, greenhouse gas emission, and water usage by 30%.
URC has also set out to reduce its packaging footprint by making 60% of the company’s packaging recyclable.
Shares in URC jumped 7.68% or P11.70 points to close at P164 each at the stock exchange on Thursday. — Arra B. Francia
