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By Likha C. Cuevas-Miel, Reporter
Earnings of Universal Robina Corp. (URC) fell
from October to December despite double-digit sales growth, the
company announced Friday, citing as reasons the absence of
nonrecurring gains, foreign exchange translation losses, higher
taxes and mark-to-market losses due to dropping bond prices.
In a statement, the food and beverage arm of JG
Summit Holdings Inc. said its unaudited net income during the first
quarter of its fiscal year declined by 93.5 percent to P234 million,
despite a 25.8-percent improvement in its operating profit to P917
million .
The Gokongwei-led company said it recorded no
gains from the sale of any assets during the period, unlike in 2006
when it enjoyed income from the sale of equity investment in sister
firm Robinsons Land Corp.
In addition, interest income from investments in
financial assets at fair value, went down by 22.8 percent to P347
million year on year due to the stronger peso. The company also
recorded mark-to-market losses on financial assets due to the
decrease in market values of investments in bonds.
However, operating income performed better owing
to the “resilient” revenue growth and price increases of some
key products, which offset costlier raw and packaging materials and
higher freight expenses brought about by more expensive fuel.
Consolidated net sales and services during the
period went up by 18.1 percent to P10.86 billion, driven by the 16
percent improvement in the URC’s food and beverage division. The
company attributes the better performance to the 20.1-percent
increase in domestic sales, mainly driven by snackfoods and
beverages, which grew by 21.5 percent and 24.4 percent,
respectively.
All categories in the snackfoods led by bakery
and biscuits posted double-digit growth while strong coffee sales
underpinned the expansion in the beverage division. The division’s
international sales climbed by 8.5 percent to P2.020 billion, buoyed
by revenue growth in Thailand and Vietnam. Sales abroad grew by 25
percent to $ 47 million.
URC’s packaging division posted net sales
growth of 18.4 percent to P364 million, while net sales in its
agro-industrial group rose by 10.4 percent to Pl40 million.
The farms business also grew by 12 percent due
to high prices of hogs as a result of the 20-percent decrease in
supply, while net sales of the commodities food group surged by 42.2
percent to P1.049 billion as gross flour sales volumes went up by 5
percent. Sugar sales were higher as the plant the company acquired
started milling during the quarter.
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