MANILA, Philippines – Gokongwei-led Universal Robina Corporation (URC) posted a net income of P5.4 billion in the 1st half of the year, 9% higher than the same period in 2018.
URC said the growth was driven by improvements in operating income which offset foreign exchange losses and higher finance costs.
Its net sales stood at P67 billion, 4% higher year-on-year, on the back of strong local consumer consumption.
Its operating income grew by 8% to P7.6 billion with margins improving by 41 basis points compared to last year.
Growth in operating income was led by Branded Consumer Foods (BCF) Philippines, which produces snacks like Chippy, Piattos, and Cream-O.
Sales
BCF sold goods amounting to P51.5 billion from January to June, 4% higher versus the same period last year.
Domestic revenues increased by 10% while operating income rose 15%.
Double-digit growth was seen in coffee, snacks, and its joint ventures.
However, international revenues declined by 4% due to foreign exchange translation. Despite this, operating income still grew by 2%. (READ: URC ties up with European snack maker to boost Oceania operations)
"We are pleased that our top strategic priority to pivot our Philippines branded consumer foods division back to strong growth continues to be on track," said Irwin Lee, URC president and chief executive officer.
Agro-industrial and commodities
URC's sales in its agro-industrial and commodities business amounted to P14.8 billion, 5% higher year-on-year, while operating income grew by 3%.
Agro-industrial sales jumped by 20% due to higher feeds sales. Flour sales also grew a strong 19%.
However, sugar and renewables sales declined by 12% due to a different phasing of external sugar sales. – Rappler.com
