Universal Robina net income up 51% to P3.2B in Q1

Gokongwei-led snack food maker Universal Robina Corp. (URC) saw a more than 50% increase in its earnings during the first three months of 2021.

In a disclosure to the Philippine Stock Exchange on Friday, URC said it booked an unaudited net income of P3.2 billion in the January to March period, up 51% versus the same period last year.

“This performance was driven by growth in operating income, lower foreign exchange losses, controlled financing costs, and was further boosted by benefits from the Comprehensive Recovery and Tax Incentives for Enterprises (CREATE) Act,” the company said.

Total net sales reached P34.6 billion, up 3% increase compared to the same period last year.

“This performance was driven by the continued recovery of URC’s international business units and growth from its commodity division, which offset challenges in domestic branded consumer foods,” it said.

Sales of domestic and international branded consumer foods amounted to P25.7 billion.

Domestic revenues declined by 5% to close at P14.9 billion, as market sentiment continues to be challenged.

“The Philippines business also experienced higher sales last year, with a strong first quarter in 2020 driven by pantry-loading from the Taal eruption in January 2020 and the first enhanced community quarantine imposed by the government in March 2020,” it said.

International revenues hit P10.8 billion, up 11% versus last year, “driven by the strong recovery of our ASEAN markets particularly by Vietnam and Thailand, as well as favorable exchange rates.”

Meanwhile, sales of our Agro-Industrial & Commodities divisions totaled P8.5 billion, up 10% year-on-year, “driven by the commodities foods group posting strong growth of 19%.”

“The acquisitions of Central Azucarera de La Carlota and Roxol Bioenergy Corporation continue to perform ahead of expectations as we improve operational efficiencies,” URC said.

The Agro-Industrial Group’s sales declined by 7%, with lower sales volumes due to the restructuring of its hog farming operations, the company said.

This was mitigated by the expansion of its Animal Nutrition and Health (ANH) and Food, Drugs and Disinfectant (FDD) businesses, it said.—LDF, GMA News