GOKONGWEI-LED Universal Robina Corp. (URC) reported a 2% decline in first-quarter (Q1) core net income as lower sugar selling prices weighed on commodities profits despite higher sales from its branded food business.
In an announcement on Thursday, the listed food and beverage manufacturer said core net income attributable to parent fell to P3.8 billion within the January-to-March period, broadly consistent with the decline in operating income.
Total operating income declined 2% yr on yr to P5.4 billion as commodities profits were affected by lower sugar selling prices. Net income from continuing operations also fell 4% to P4.1 billion.
Quarterly sales rose 6% to P47.9 billion, driven by broad-based, volume-led growth in Branded Consumer Foods (BCF) Philippines, together with strong contributions from the Animal Nutrition and Health (ANH) and Flour divisions.
URC said its recent Sariaya flour mill also “contributed meaningfully to production” throughout the period.
“We began the yr with strong, volume-led growth, led by BCF Philippines, reflecting accelerating momentum and continued excellence in execution,” URC President and Chief Executive Officer Irwin C. Lee said.
“We’re balancing targeted demand support with margin recovery,” he added.
Mr. Lee also said the corporate is monitoring risks from geopolitical tensions within the Middle East.
“We remain mindful that any inflationary spillover from the Middle East conflict could pressure consumer demand, and we’ll stay agile — managing pricing, mix, and costs rigorously to sustain momentum,” he said.
Throughout the quarter, BCF sales increased 9% to P32.2 billion. BCF Philippines grew 10% to P22 billion on broad-based volume expansion and the carryover good thing about last yr’s pricing actions.
International BCF sales rose 6% to P10.2 billion, led by Malaysia amid continued demand for Munchy’s products.
Meanwhile, Agro-Industrial & Commodities recorded flat sales of P15.7 billion throughout the quarter.
URC said growth within the segment was driven by a 22% increase in Animal Nutrition and Health and a 17% rise in Flour as Sariaya production ramped up.
These gains were partly offset by weaker performance within the sugar and renewables business as a consequence of lower distillery utilization rates.
On Thursday, URC shares rose by 0.81% to P62 each. — Alexandria Grace C. Magno