Universal Robina Corp., the biggest maker of snack foods, said Friday net income increased seven percent in 2019 to P10.1 billion from a year ago, boosted by the strong domestic sales of coffee, snack and ready-to-drink tea.
URC said in a disclosure to the stock exchange net sales rose 5 percent to P134.2 billion while operating income grew 12 percent to P15 billion.
The company said total sales from branded consumer food group reached P105.9 billion while domestic revenues climbed 8 percent. Operating income delivered a growth of 12 percent.
This was driven by the successful turn-around of Great Taste coffee, acceleration of Jack n’ Jill snacks and Noodles, recovery of C2 ready-to-drink tea and contributions from joint venture businesses with Danone and Vitasoy.
International revenues declined 2 percent to P42.2 billion on weaker performance in Thailand, offsetting the growth coming from Vietnam and Oceania. This was compounded by forex devaluations particularly in New Zealand and Australia.
Sales from Vietnam recovered with a growth of 8.9 percent, driven by C2 sales with the significant contributions from new product launches, partly offset by decline in Rong Do.
New Zealand sales rose 1 percent on slow domestic market while sales in Australia grew 4 percent due to strong performance across the board.
Thailand sales went down by 5.6 percent amid the decline in biscuits and wafers while exports grew on strong sales to Cambodia. Thailand’s performance remains challenged as the economy continues to affect consumer sentiment.
The agro-industrial and commodities registered sales of P28.3 billion, a 12-percent increase versus last year while operating income grew by 12 percent.
URC president and chief executive Irwin Lee said, “2019 was an important pivot year and this sets a solid base in our glidepath back to sustainable growth and profitability.”
“We are happy that we have accelerated the growth of the Philippine business and have brought our core branded foods business back on track. Our transformation journey continues in full throttle as we take on the new challenges of 2020 and beyond,” said Lee.
“We will continue to reinvest in brand building through innovation and enhance our distribution further as we anticipate a stronger fightback from the competition. Despite the challenges ahead, we are excited with our portfolio line-up this year as we continue to strengthen our core while expanding into new adjacencies across markets where we operate,” he said.
