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URC’s net income jumped by 109% to P24.3b last year

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Food manufacturer Universal Robina Corp. said Monday net income jumped by 109 percent in 2021 to P24.3 billion from a year ago, led by a one-time gain from the sale of its Oceania business.

URC said in a disclosure to the stock exchange that excluding the gain from the sale of assets, core net income declined by 8 percent as the record commodity prices resulted in higher material input costs.

It said the sale of Oceania business enabled it to monetize the efficiencies and synergies it created in Australia and New Zealand, while reinvesting into higher-growth core markets such as the recently acquired Munchy’s business in Malaysia.

Consolidated sales, excluding Oceania, rose 3 percent to P117 billion, with continuing limitations on mobility, consumer sentiment and supply chain disruptions from the second year of the COVID-19 pandemic, especially the Delta variant wave.

Sales momentum, however, accelerated in the latter half of the year, with fourth-quarter sales rising 11 percent from a year ago.

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“Coming through two years of the COVID-19 pandemic, URC remained strong—maintaining our leading positions in key markets and categories, continuing our innovation pipeline, becoming preferred partner of choice to customers and suppliers, step changing product supply chain transformation, and accelerating a people and planet friendly culture,” URC president and chief executive Irwin Lee said.

“While the challenges and uncertainties of hyper cost inflation, global climate and political turbulence persist, our growth momentum and organizational commitment to excellence give us cause for optimism in 2022,” Lee said.

Revenues from the branded consumer foods group (excluding Oceania) were flat at P83.5 billion as food and beverage markets are still slowly recovering from below pre-pandemic levels.

Domestic sales were down by 2 percent to P61.4 billion.

URC said it began seeing positive signs of recovery in the second half of 2021 as fourth-quarter sales grew 6 percent compared from the same quarter in the previous year.

International division expanded by 5 percent to close at P22.2 billion.

“We will continue to invest in our brands, build channel strength, make future bets in attractive white spaces and operate efficiently and sustainably, all towards future-proofing our growth”, Lee said.

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