Food manufacturer Universal Robina Corp. said over the weekend net income jumped 51 percent in the first quarter to P3.2 billion from a year ago, driven by higher operating income and lower net foreign exchange loss.
First-quarter sales improved 3 percent to P34.6 billion from the same period last year, URC said in a disclosure to the stock exchange over the weekend.
“This performance was driven by growth in operating income, lower foreign exchange losses, controlled financing costs and was further boosted by benefits from the Comprehensive Recovery and Tax Incentives for Enterprises Act,” URC said.
It said the continued recovery of URC’s international business units and growth from its commodity division offset the challenges in domestic branded consumer foods.
Operating income was up 9 percent from the same period last year to end at P4.3 billion as the company was able to register improvement in margins despite rising commodity costs.
Sales of branded consumer foods to the domestic market declined by 5 percent P14.9 billion, as market sentiment continued to be challenged.
“COVID-19 is still very much with us. In general, domestic sentiment remains muted, with many consumers still very cautious on spending. On the cost side, we face headwinds as commodity prices continue rising. Despite these challenges, we were able to gain market share, increase overall top line sales, and achieve good profit growth,” URC president and chief executive Irwin Lee said.
International revenues hit P10.8 billion, up by 11 percent from last year, driven by the strong recovery of ASEAN markets particularly Vietnam and Thailand and favorable exchange rates.
Meanwhile, sales from agro-industrial and commodities group totaled P8.5 billion, up 10 percent from a year ago.
URC last year acquired Central Azucarera de La Carlota and Roxol Bioenergy Corp. from Roxas Holdings Inc. which continued to perform ahead of expectations
“As the pandemic continues, URC will continue to navigate and mobilize in the face of change. We will build on every valuable insight and experience from 2020, stay attuned to market trends, and adapt when appropriate, all while keeping to our purpose: to delight everyone with good food choices,” Lee said.
