URC profit rose 12% in Jan-Sept

GOKONGWEI-led Universal Robina Corp. (URC) reported on Friday that its net income increased to P8.1 billion in the fiRST THREE QUARTERS OF 2020 AMID THE “SEVERE CHALLENGES” POSED BY THE CORONAVIRUS PANDEMIC TO ITS BUSINESS. In a disclosure, the listed food and beverage arm of JG Summit Holdings Inc. said the amount was a 12-percent improvement from P7.3 billion in the same period last year.

It attributed the growth to higher operating income, lower debt and interest expense, and lower foreign exchange losses. Sales dipped to P99.77 billion from P99.78 billion year-on-year, while those from the firm’s local and international branded consumer foods segment reached P77.4 billion.

“The pandemic has deteriorated trading conditions, [which] resulted in market contractions in several snack food and beverage categories the company competes in,” URC said.

Domestic revenues inched up by 1 percent to P46.5 billion, as the growth in powdered drinks, snacks, biscuits and chocolate was offset by the double-digit decline in candies, ready-to-drink beverages and food service channel.

International revenues hit P30 billion, flat on a constant currency basis and 7- percent lower in peso terms.

Sales from URC’s agro-industrial and commodities segments climbed by 9 percent to P22.3 billion in the nine months. Revenues from its commodities foods group grew by 25 percent; sugar and renewables, 31 percent; and flour, 11 percent.

“These were offset by the agro- industrial group’s sales decline of - 7 percent, due to lower volumes in hogs resulting from its downsized operations,” the company said.

“The current environment continue to pose severe challenges to the business. Weaker consumer sentiment and slowing retail sales in Q3 (third quarter), plus sluggish macroeconomic fundamentals, are weighing on a slower path to market recovery,” URC President and Chief Executive Office Irwin Lee said in the disclosure.

“Despite these challenges, we remain focused on operational excellence, business transformation, and investing in building stronger brands and innovation to fuel growth. This focus is helping us perform ahead of market trends,” he added.

“More importantly, this enables us to continue supporting and partnering with our customer and suppliers to serve the needs of our consumers and communities in this time of crisis.”

URC shares gained P1.70 or 1.21 percent to finish at P141.70 apiece on Friday.