Forex, mark-to-market push URC to losses

MANILA, Philippines- The food and beverage arm of the Gokongwei-owned JG Summit Holdings Inc. posted a net loss in the first three months of its 2009 fiscal year owing to foreign exchange and mark-to-market losses from financial assets. Universal Robina Corp. (URC) said its unaudited consolidated net loss for the first quarter of the 2009 fiscal year reached P232 million, from P234 million in net income in the same period last year, the company told the Philippine Stock Exchange on Monday. “This decline was caused primarily by foreign exchange losses and mark-to-market losses from financial assets, resulting from the drop in bond prices worldwide arising out of the current financial crisis," URC said. Net sales and services, however, registered a 22.2-percent expansion to P13.268 billion. URC's operating profit, meanwhile, improved to P1.024 billion, or an increase of 1.7 percent owing to the profitability of its branded consumer foods units, improving margins of international operations, and the implementation of price increases for some key products. The company’s core earnings before tax was lower by 10.5 percent to P793 million on increase in short-term debt and trust receipts. The largest contributor to the group's sales revenue, URC's branded consumer foods segment, including the packaging division, increased sales of goods and services by 25.4 percent to P10.433 billion during the period. Philippine branded operations also showed growth, reaching P6.935 billion in sales this quarter, growing 16.9 percent versus last year. Net sales of URC's agro-industrial group amounted to P1.509 billion for the first quarter, or a percent higher than last year. URC's commodity foods group booked gross sales of P2.180 billion for the first quarter of fiscal 2009 against P1.775 billion in the same period last year, or an increase of 22.8 percent. GMANews.TV