Universal Robina’s net income down 17% in first nine months of 2018

Lower operating income and foreign exchange losses dented Universal Robina Corp.’s (URC) net income in the first nine months of the year.

Its net income fell by 17 percent to P7.0 billion in January to September, the company said in a regulatory filing on Thursday submitted by Corporate Secretary Rosalina Rivera.

“URC’s nine-month net income amounted to P7.0 billion, a decline of 17 percent due to lower operating income and foreign exchange losses due to a weaker peso,” it said.

Sales growth slowed down to 1 percent from 6 percent in the first six months of the year.

“The environment remains to be very challenging with macroeconomic pressures, especially in the Philippines,” URC president and CEO Irwin Lee said.

“Inflation and a weaker peso continue to affect our conversion and operating costs. Thus margins are continuously affected,” he said.

The peso fell to a 12-year low of P54.31:$1 in September, but has since been trading at the P53:$1 level.

“We will be proactive and look for opportunities to manage our portfolio better and implement plans and programs to mitigate the effects on our top line and bottom line in the near-term,” said Lee.

As of 12:35 p.m. on Thursday, shares of URC were trading at P134.70, down P5.30 or 3.79 percent from Wednesday’s close of P140.00. —Jon Viktor Cabuenas/VDS, GMA News