Universal Robina says forex, venture losses slowed growth in fiscal first half

Universal Robina Corporation on Wednesday reported net income for the fiscal first half of 2015, ending in September 2014, was up 4.3 percent to P6.490 billion from the year earlier.

 

"Growth was slower than operating income as we booked higher net finance cost, equity share in net losses of joint ventures we started – namely Calbee-URC Inc. and Danone Universal Robina Beverages Inc. – and unrealized foreign exchange losses," the food and beverage firm said.

 

"The company is now in a net debt position of P18.486 billion with a financial gearing ratio of 0.51 (vs. 0.16 in FY14) as the company financed the Griffin’s acquisition via long-term debt. We also spent P6.545 billion for cash dividends and P2.475 billion on capital expenditures, which was mostly for branded foods," it added.

 

Sales grew by 21.6 percent, with net sales reaching P55.644 billion on-year. 

 

The branded foods, complemented by sugar and feeds, mainly drove sales during the fiscal first six months, the company said.

 

Operating income was up 26.3 percent to P8.851 billion from P7.009 billion year-on-year as lower input prices for palm oil, creamer and PET resin and additional operating leverage resulted in margin expansion for branded foods.

 

"Philippine branded consumer foods business increased sales by 15.7 percent, while International branded consumer foods recorded a 37.8 percent growth with the consolidation of Griffin’s New Zealand results starting mid-November upon closing of the acquisition," the company said. – VS, GMA News