Gokongwei-led snacks and beverage manufacturer Universal Robina Corp. (URC) recorded a 12.6-percent growth in net income for its fiscal first quarter ending December 2014.
The C2 green tea maker said net income in the first quarter of its fiscal year 2015 went up to P3.25 billion from P2.88 billion a year earlier as revenues increased by 18.7 percent to P26.95 billion from P22.7 billion.
Sales were derived from strong performances across its segments—branded consumer foods (BCF), which account for 83 percent of sales, while the rest came from non-branded consumer foods, namely the agro-industrial group and the commodity foods segment.
BCF sales surged 20.1 percent to P22.37 billion from P18.631 billion the previous year thanks to the 16.9 percent and 27 percent growth in its domestic and international operations, respectively, mostly driven by beverage brands such as C2 and powdered coffee brands Cafe Puro and Nescafe
For the agro-industrial segment, revenues climbed 10.3 percent to P2.25 billion from P2.04 billion a year earlier, fueled by a 24.8-percent increase in its feeds business.
Sales from the commodity foods segment also increased by 11.3 percent to P2.03 billion from P1.82 billion previously, thanks to a 28.7-percent jump in refined sugar sales.
The company said it has started consolidating the operations of New Zealand Snack Food Holdings Ltd (NZSFHL) into URC International after closing the acquisition in mid-November last year.
URC acquired NZSFHL, the holding company of leading New Zealand-based snack food firm Griffin’s Food Ltd, in November last year.
Other joint ventures of URC include Danone Asia Holdings Pte Ltd , manufacturer and distributor of the Evian water brand; as well as Calbee Jack N’ Jill, its snack food venture with Japan-based Calbee Inc.
URC has programmed a capital expenditure of P9 billion this year, higher than last year’s P7.69-billion actual spending, to jumpstart its capacity expansion mostly for the BCF segment.
The company manufactures salt-flavored snacks, candies, chocolates, and ready-to-drink tea under the C2 green tea brand and Jack N’ Jill snacks, while it is the number two player in the coffee segment.