Universal Robina Corporation (URC) has announced a notable 9% increase in sales, reaching Php 117.6 billion for the nine months ending September 2023. This growth comes despite the difficult macroeconomic environment marked by high inflation.
The company’s sales in the third quarter alone rose by 6%, predominantly driven by its agro-industrial and commodities business.
URC’s operating income showed a robust double-digit growth of 17%, closing at Php 12.6 billion for the nine-month period. The third quarter witnessed an even higher growth rate of 19% in operating income, as URC continues to enhance its operating margins through various profit recovery initiatives.
The net income for the first nine months stood at Php 10.3 billion, a 6% increase from the previous year. This was attributed to higher comparatives from forex gains last year and increased finance costs. The core net income for the first nine months grew by 11%, with a 12% increase recorded in the third quarter.
The company’s financial position remains solid, with a healthy cash balance of Php11.3 billion, net debt of Php13.3 billion, and a low gearing ratio of 0.22.
Sales in the Branded Consumer Foods (BCF) segment, excluding Packaging, grew by 3% to Php 81.1 billion. BCF Philippines reported a 4% increase in revenues, reaching Php56.2 billion, with most categories showing market share and order fill rate improvements.
BCF International’s sales rose by 2% to Php 24.9 billion, driven by strong performances in Vietnam, Myanmar, and Malaysia, despite inventory corrections in Thailand and Indonesia.
The Agro-Industrial & Commodities divisions experienced a significant 27% sales increase, totaling Php 35.6 billion. All three business units – Agro-Industrial Group, Sugar and Renewables, and Flour – posted double-digit growth in the third quarter, propelled by higher volumes.
URC’s President and CEO, Irwin Lee, commented on the company’s resilience amidst elevated inflation, highlighting URC’s commitment to maintaining sales momentum and focusing on profitability. These efforts are aimed at supporting investments in brand building and supply chain enhancement, driving further growth and creating value for stakeholders.
PhilippinesToday.ph