UNIVERSAL Robina Corp., the Gokongwei-led snack food firm, saw an 11.8 percent increase in the first nine months ending June of its 2015 fiscal year on the back stronger sales and realization of its recent partnerships and joint ventures (JV).
The company said in a statement, however, that the 11.8 percent net income growth was slower on higher net finance cost; equity share in net losses of JVs like Calbee-URC Inc. and Danone-Universal Robina Beverages Inc.; and unrealized foreign exchange losses mainly coming from its Indonesia operations.
Revenues were mainly driven by branded foods as well as sugar and feeds, increasing sales by 18.3 percent to P81.943 billion from year-ago levels. Operating income likewise perked up by 24.1 percent to P13.05 billion from P10.52 billion.
Sales of local branded consumer foods (BCF) increased by 10.9 percent to P43.138 billion from P38.885 billion, while international BCF surged by 38.4 percent to P24.838 billion than year-ago levels on the consolidation of Griffin Foods’ New Zealand operations.
Non-branded foods also saw increased sales, growing 12.5 percent to P13.116 billion on the strong performance of sugar and feeds, which gained 39.4 percent and 19.9 percent, respectively.
The firm’s expenses during the nine-month period totaled P10.52 billion — P9.54 for cash dividends and P3.97 billion for capital expenditures, mostly in the BCF segment.
This year, the company is eyeing 20 percent to 25 percent sales growth driven mainly by the BCF segment and sustained sugar and flour sales, but tempered somewhat by the agro-industrial segment on the anticipated lower prices of hog feeds.
URC has programmed P9 billion in capex for its fiscal year ending in September, the bulk of which will go to the BCF business to sustain operational efficiencies, and jump-start its capacities expansion with the consolidation of acquisitions and joint ventures made last year.
The snack food company has operations and distribution lines in several areas outside the Philippines, including the United States, Australia, Europe, Japan, Korea, the Middle East, Southeast Asia and West Africa.
URC is engaged in snack food and beverage manufacturing mainly of branded products under the Jack N’ Jill and C2 drinks brands, while also having non-branded business in the sugar, flour and agro-industrial segments.