Universal Robina net drops 12% to P12.8B

FOOD and beverage company Universal Robina Corp. reported a 12-percent decline in 2023 net income, to P12.80 billion from P14.50 billion in 2022, due to the absence of one-off gains from a land sale booked in the previous year.

Core income, however, rose 6 percent to P12.60 billion, driven

by operating income growth but tempered by higher interest rates.

“Over the past few years, the company has made purposeful strategic decisions to enter new segments outside our core categories in the Philippines and to build new legs in international, all of which we are seeing come to fruition,” URC President and CEO Irwin Lee said in a statement on Thursday.

Full-year sales reached P158.40 billion, up 6 percent from P149.90 billion in 2022, “as both its branded consumer foods (BCF) and agro-industrial and commodities (AIC) businesses continued their growth momentum into the fourth quarter, growing sequentially versus the previous quarter,” it said.

The BCF business, excluding packaging, posted sales of P108.40 billion, up 2 percent year on year, with BCF Philippines growing its revenues by 3 percent to P75.6 billion while BCF International’s revenues grew 2 percent to P32.80 billion, aided by strong sales in Vietnam and Malaysia.

The AIC segment, meanwhile, logged revenues of P48.80 billion, up 16 percent from the previous year, boosted by double-digit growth from each of the agro-industrial group, sugar and renewables, and flour segments, thanks to higher volumes, favorable sugar prices, and the continued growth of their pet food segment.

“We have also continued to make good progress in our Fuel for Growth program, surpassing our initial commitments on operational efficiencies and savings. These initiatives will allow us to continue delivering on our mission to provide our consumers with good food and beverage choices for the years to come,” Lee said.

URC’s share price went down by P1.30 to close at P110.30 on Thursday amid a 0.04 percent uptick in the benchmark Philippine Stock Exchange index.