URC spending P8-billion to expand food business
Food manufacturer Universal Robina Corp. said it will spend P8 billion in 2018 to fund the expansion of its branded food group.
URC said in a filing with the stock exchange that out of the P80-billion capital spending and maintenance capital expenditures plan, P5.5 billion would be used to expand capacities and improvement of handling, distribution, quality control and operational efficiencies throughout the branded food group.
Another P1.5 billion will be allotted for the commodity foods group for flour mill and pasta manufacturing equipment, sugar business expansion and maintenance capital expenditures.
It said the remaining P1 billion for agro-industrial group would be for sow level expansion, new commissary and processed meat plant, feedmill capacity expansion, farm improvement and handling facilities for feeds division.
This year’s capital expenditure is slightly lower than the P8.13 billion the company spend it 2017 which was primarily used for site development and building constructions and rehabilitation/upgrade of beverage and snacks facilities in the Philippines; construction of glucose plant and coffee manufacturing facilities in Vietnam, new warehouse and improvement in biscuit and wafer lines in Thailand and warehouse construction and biscuit line installation in Myanmar.
URC’s net income declined 15.4 percent in 2017 to P10.8 billion from P12.8 billion in 2016 as costs and expenses grew faster than revenues.
Consolidated net revenues climbed 11 percent to P125 billion.