Gokongwei-led Universal Robina Corp. (URC) ended its 2012 fiscal year with a net income of P8.1 billion, a 62.9-percent increase from the P5.01 billion it earned in 2011.

In a statement, URC said that besides better operating income from its branded consumer foods group and trading gains, the increase in its net income was from higher market values of its bond and equity holdings.

Also, URC was able to hit its operating income of P7.801 billion for fiscal year 2012, which is 13.2-percent higher than the P6.889 billion the firm registered in the prior year.

The increase in the firm’s operating income comes on the back of significant contribution from its branded foods business on better volumes and scales, as well as lower input compared to the prior year.

URC’s agro-industrial business improved its numbers as well.

The firm’s branded consumer foods (BCF) group, including the packaging division, increased sales of goods and services by P5.69 billion, or 11.3 percent to P56.257 billion for fiscal year 2012. This was higher compared to the P50.558 billion of 2011.

BCF Philipines posted significant growth of 16.2 percent, to register full year sales of P34.351 billion.

According to URC, the growth was largely driven by its beverage division from the stellar performance of its coffee business, coupled with the recovery of its ready-to-drink beverage business.

The snackfoods division of URC also posted growth “with salty snacks leading the way, complemented by biscuits and candies.”

URC added that it remained the dominant market leader in salty snacks, candies, chocolates and ready-to-drink tea in the Philippines.

International sales
Net sales of URC’s international BCF business increased by 6.3 percent (in dollar terms) to end at $471 million or P20.157 billion for the fiscal year.

URC said that Vietnam was the primary driver as it registered double digit sales growth on the back of its ready-to-drink beverage business, the main contributor to the top-line or revenues.

“Indonesia also contributed as it built some sales momentum due to the company’s renewed entry into salty snacks particularly on the extruded/pelletized front,” the company said.

However, overall top-line growth of URC was tempered by Thailand’s softer sales, as the effects of the prolonged flooding in the region resulted in a decline in overall industry consumption for biscuits and wafers.

URC, on the other hand, remains to be the number one player in these two categories and the company has started to implement initiatives to accelerate recovery in its Thailand sales.