Food manufacturer Universal Robina Corp. said second-quarter net income jumped 76 percent to P3.8 billion from a year ago, boosted by the strong operating performance and foreign exchange gains.
URC said operating income in the second quarter of the year climbed 16 percent to P4.3 billion, driven by positive category mix and disciplined cost control amid the pandemic.
Second-quarter net sales rose 1 percent to P34 billion, on strong growth in snack foods, noodles, powdered drinks, animal feeds, flour and sugar which offset the decline in sales in candies and ready-to-drink beverages.
“The current uncertainty driven by COVID-19 is still evolving, but we are motivated by the fact that business results in the first half turned out better than our severe lockdown forecasts. While we have business continuity lans quickly set in motion, we were bracing for the worst due to quarantine restrictions, supply chain disruptions and fast demand shifts. Fortunately, our focus on execution and the heroic efforts of URC people and partners helped us deliver essential food and drinks to customers, consumers, communities and frontliners,” URC president and chief executive Irwin Lee said.
“Managing through this crisis requires continued vigilance, agility and flexibility. While we may have weathered the first wave of this crisis, we must continue securing the here and now, while also preparing for the recovery efforts for the balance of the year and beyond,” Lee said.
The strong second-quarter performance boosted the company’s first half-net income by 13 percent to P6 billion as net sales continued to hold up at P67.4 billion.
First-half sales of domestic and international branded consumer foods reached P50.9 billion.
Domestic revenues grew 2 percent, driven by strong growth in snacks, bakery, coffee, powdered chocolate and noodles.
International revenues declined by 3 percent on negative impact of COVID-19 in Indochina.
International profit in the second quarter grew by 20 percent, tapering overall decline in the first half, on buoyant sales in Oceania and cost control measures across all countries.
The agro-industrial and commodities businesses also reported 13-percent increase in sales in the first half to P16.5 billion while operating income grew by 11 percent.