Food manufacturing giant Universal Robina Corp. (URC) reported a two percent drop in net income attributable to equity holders of the parent for the first quarter of 2025, falling to P4.05 billion as costs grew faster than revenues.
URC, in a disclosure to the stock exchange, attributed the decline to higher costs of raw materials, especially coffee, and lower foreign exchange gains.
First quarter consolidated revenues, however, rose 6.7 percent to P45.26 billion from P42.42 billion in the same period a year ago.
Cost of sales, which primarily consists of raw and packaging materials costs, manufacturing costs and direct labor costs, jumped 10.6 percent to P33.2 billion.
Total operating income for the period ended at P5.5 billion, growing by 1 percent versus the same period last year.
URC’s branded consumer foods segment reported a 6 percent increase in sales to P29.67 billion, with strong performances in both domestic and international markets.
Domestic sales posted 4.1 percent increase to P20.05 billion from P19.26 billion for the first quarter of 2024 due to volume growth driven by robust double-digit volume growth in snacks, ready-to-drink beverages, and confectionery.
International recorded 10 percent increase in sales P9.6 billion fueled by strong double-digit increase of Vietnam, as well as sustained topline increases for Malaysia and Indonesia.
URC said international business continued to sustain its momentum and deliver above-market growth, despite the weak ASEAN sentiment and tariff uncertainties in export-oriented economies
Meanwhile, the group’s commodities segment also showed double-digit growth, led by sugar and renewables.
“As overall consumer confidence and sentiment improve, we look forward to accelerating our forward momentum and continuously improving URC’s performance,” URC president and chief executive Irwin Lee said.
“We will continue to create and sell trusted products that people love, with the best innovations at the best prices, while staying true to our mission: to delight our customers and consumers with good food choices,” he said.
Share price of URC on Thursday ended lower by 1.73 percent to P85.40 apiece.