URC says net income up 26.4% despite problem in Vietnam

Universal Robina Corp. saw its net income expand despite the problem encountered in the Vietnam operations.
 
In its fiscal first nine months 2016 ending in June, URC posted a net income of P12.199 billion, up 26.4 percent year-on year.
 
The company told the Philippine Stock Exchange on Friday that its net income was primarily driven by one-offs that included unrealized foreign exchange gains on the New Zealand dollar, appreciation of Indonesian rupiah, and realized market valuation of financial instruments due to the partial prepayment of a long-term debt in New Zealand.
 
URC posted net sales of P85.373 billion, up 4 percent from a year earlier driven by Branded Consumer Foods (BCF) Philippines, Indonesia, Griffin’s, and renewables.
 
Operating income stood at P13.384 billion, up 2.5 percent.
                                                                                                             
 BCF International sales were basically flat at P24.653 billion from P24.838 billion as challenges in Vietnam put a drag on results of the international branded business, the company noted.

Last June, the Vietnamese health ministry imposed a $260,000 (P12 million) fine against the URC unit in Vietnam after tests found high lead content in its flagship beverage brands C2 and Rong-Do.

BCF Philippines, excluding packaging, grew by 4.5 percent to P45.081 billion.

Sales of non-branded consumer foods group reached P14.798 billion, up 12.8 percent from P13.116 billion driven by renewables and feeds.

Commodity foods group sales increased by 23.4 percent to P7.967 billion.

Agro-Industrial Group sales had a slower growth at 2.6 percent as the decline in the farms section was helped up by the performance of feeds.

The farms section was down by 14.1 percent as both sales volume and average selling price of hogs went down.

Feeds expanded by 23.4 percent driven by higher sales volume of hog feeds, dog food, and game fowl feeds, supported by marketing activities for the period.

Capital expenditures stood at P 6.024 billion, mostly on capacity expansion for the BCF and the acquisition of the Balayan sugar mill. — Ted Cordero/VDS, GMA News