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THE maker of Jack ‘n’ Jill snack foods and C2 tea
drink reported on Thursday that its earnings in the six months
ending March this year climbed by double digits on the back of
higher sales.
In a disclosure, Universal Robina
Corp. (URC) said its net income rose by 12.1 percent to P1.806
billion year on year as its consolidated net sales and services grew
by 15.5 percent to P21.154 billion.
The company’s branded consumer
food group—which comprises 74 percent of total sales for the
period—posted net sales and services of P2.201 billion, 16.4
percent higher than a year ago. Net sales rose18.9 percent due to
the 19.5-percent growth in savory snacks, candies, chocolates and
biscuits while its beverage sales grew by 21.2 percent. Its
international sales climbed 9.7 percent to P4.140 billion buoyed by
higher revenues from Thailand, China, Malaysia and Vietnam. In US
dollar terms, sales grew 28.5 percent year on year due to higher
volumes.
URC’s packaging division
improved its net sales by 33.3 percent to P719 million due to an
increase in sales volume. Its agro-industrial group posted a
5.1-percent increase to P2.802 billion on the back of higher selling
prices to compensate the decline in sales volume. Sales growth in
the farm business stood at 8.8 percent while the feeds business’
net sales were flat year on year.
The commodity food group, which
includes sugar milling and refining, flour milling and pasta making,
posted a net sales growth of 20.1 percent to P1.976 billion from a
year ago. During the period, flour net sales increased by 28.6
percent due to higher average selling prices. Sugar net sales
dropped 15.2 percent due to lower tolling revenues.
The company’s cost of sales
went up 17.7 percent to P15.989 billion due to the increase in sales
volume and cost of major raw materials like whey powder, palm olein,
skimmed milk, wheat, corn grain, refined sugar, soya, bunker fuel
and diesel.
The prices of some imported raw
and packaging materials were lower during the period due to a
stronger peso. With these, URC’s gross profit climbed 9.3 percent
to P5.165 billion from a year ago.
Prices of raw materials have been
on the rise due to costlier fuel and farm commodities. Philippine
inflation hit a three-year high of 8.3 percent last month, breaching
the central bank’s forecast.
Monetary authorities target
inflation to range from 3 percent to 5 percent this year.
The peso’s appreciation
vis-a-vis the dollar had kept prices of imported items like fuel in
check until early this year.
The dollar’s renewed strength
in recent weeks however has dampened the local currency, as
investors expect inflation concerns in the US to force the Federal
Reserve to raise interest rates.
--Likha C. Cuevas-Miel
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