The Gokongwei-led snacks and beverage firm Universal Robina Corp. (URC) saw an almost 39-percent increase in its nine-month net income, after it registered higher other revenues from the sale of its investment portfolio.
In a statement, URC reported that its net income for the nine months of fiscal year 2013 (fiscal year beginning October 2012 and ending September 2013) reached P8.5 billion, a 38.7-percent increase from the P6.1 billion it posted in the same period last year.
“Aside from higher operating income, the increase was due to higher other revenues as the company booked realized one-time gains from the sale of its investment portfolio earlier this year, and lower finance cost due to short and long term debts retirement,” URC explained.
The company’s operating income was at P7.6 billion for the nine months of fiscal year 2013, 32.1 percent higher than the P5.8 billion it registered in the same period last year.
URC also reported a 13.3-percent sales growth for the nine months of fiscal year 2013, with net sales amounting to P60.1 billion vs. P53 billion in the prior year.
According to URC, its Philippine branded consumer foods (BCF) business was the main driver for total company growth, as it increased sales by 22.4 percent for the nine months of fiscal year 2013, while BCF International accelerated its sales momentum in the recent fiscal third quarter.
URC’s branded consumer foods group, including the packaging division, increased sales of goods and services by P5.9 billion, or 14.3 percent to P47.7 billion for the nine months of fiscal year 2013 vs. the P41.7 billion posted in the prior year.
BCF Philippines itself sustained its robust sales and posted growth of 22.4 percent to register nine months sales of P30.9 billion vs. P25.2 billion in the prior year, the listed firm added.
Also, URC’s commodity foods group revenues amounted to P6.9 billion for the period, up by 16.5 percent from P5.8 billion in the prior year. This was mainly due to the 42.2-percent increase in revenues of its sugar business due to the early start of the milling season and volume contribution coming from the recently acquired mill, Tolong.
However, the flour business of the company declined by 5.8 percent as the increased flow of low-cost imported flour affected the business.
Net sales of URC’s agro-industrial group, on the other hand, amounted to P5.5 billion for the nine months of fiscal year 2013, a 2.1-percent increase from the prior year.
The farms business grew significantly by 21.4 percent from better selling prices.
The feeds business, on the other hand, posted a decline of 16.9 percent due to lower volumes brought about by the relatively lower population of backyard hog raisers and increased competitive pressures.