<\/p>\n
By Alexandria Grace C. Magno, <\/b>Reporter<\/i><\/p>\n
UNIVERSAL ROBINA CORP. (URC) said it has implemented company-wide \u201cemergency crisis mode\u201d measures following the escalation of the conflict within the Middle East and its impact on operating costs.<\/span><\/p>\n \u201cFor the reason that starting of the conflict, all of the business units of URC have immediately gone into \u2018emergency crisis mode\u2019 and captured the entire impacts of the consequences of that conflict into the business operations,\u201d URC President and Chief Executive Officer Irwin C. Lee said at the corporate\u2019s annual stockholders\u2019 meeting on Friday last week.<\/span><\/p>\n The Gokongwei-led food and beverage manufacturer said it has assessed the potential effects of sustained higher oil prices on its operations, using an assumed oil price environment of about $100 per barrel for planning purposes.<\/p>\n \u201cSo two months into the conflict, now we have a reasonably good idea and capture of all of the fee impacts of all of that\u2019s happening, starting with implications on transport costs, fuel costs, after which the carry-on effects of oil and oil derivative materials to things like resins and packaging materials. All of this, now we have assumed how which may proceed for the balance of the yr under a $100 oil environment,\u201d Mr. Lee said.<\/p>\n The corporate said it has identified corresponding cost pressures across transport, fuel, packaging, and other oil-related inputs.<\/span><\/p>\n \u201cWe’ve a great quantification of the impact of those and now we have put forth mitigation plans by way of savings efforts in addition to price increases which are now being executed available in the market,\u201d Mr. Lee added.<\/p>\n URC also said it continues to prioritize supply continuity and secure material sources to avoid disruptions in operations.<\/p>\n The corporate added that it’s monitoring possible second-order effects from higher input costs, including fertilizer prices, which could affect market conditions in the approaching quarters.<\/p>\n \u201cWe’re taking a look at the implications of upper fertilizer costs that can still come out and hit the market towards the balance of the yr and into next yr,\u201d Mr. Lee said. \u201cThat is preparing ourselves for the long run, understanding what are structural effects, what are temporary effects, and increasing our mitigation plans into 2027.\u201d<\/p>\n The listed manufacturer reported a 2% decline in first-quarter core net income attributable to the parent to P3.8 billion, as lower sugar selling prices weighed on commodities profits despite higher sales from its branded consumer foods business.<\/span><\/p>\n Quarterly sales rose 6% to P47.9 billion, driven by broad-based volume growth in Branded Consumer Foods (BCF) Philippines, in addition to contributions from its Animal Nutrition and Health and Flour divisions.<\/span><\/p>\n BCF sales increased 9% to P32.2 billion throughout the quarter. BCF Philippines grew 10% to P22 billion as a consequence of volume expansion and the carryover effects of pricing actions implemented last yr.<\/p>\n International BCF sales rose 6% to P10.2 billion, led by continued demand for Munchy\u2019s products in Malaysia.<\/p>\n On the international side, URC said its overseas business posted stronger earnings momentum throughout the first quarter, with profits rising about 11% on a continuing currency basis and 17% in peso terms.<\/p>\n \u201cWe’re seeing a quarter-on-quarter improvement in countries like Vietnam. We mentioned that we did see disruption within the trade in Vietnam within the second and third quarters of 2025. That has begun to show within the last quarter of 2025 and now we have seen continued improvement in 2026,\u201d Mr. Lee said.<\/p>\n Despite improving trends in some overseas markets, the corporate said geopolitical developments within the Middle East proceed to pose risks to consumer demand and operating conditions.<\/span><\/p>\n \u201cWe remain vigilant while our volumes remain strong into the beginning of the second quarter,\u201d Mr. Lee said.<\/p>\n \u201cWe’re watching very closely what the impact is on consumption as more price increases by other manufacturers and the continued spike in fuel costs affect consumers. It stays to be seen whether consumption patterns may have an impact within the second half of the yr and that\u2019s what we can have to be vigilant about and adjust our plans accordingly,\u201d he added.<\/p>\n<\/p><\/div>\n <\/p>\n","protected":false},"excerpt":{"rendered":" TRAINEES inside a URC manufacturing plant. \u2014 URC By Alexandria Grace C. Magno, Reporter UNIVERSAL ROBINA CORP. (URC) said it has implemented company-wide \u201cemergency crisis mode\u201d measures following the escalation of the conflict within the Middle East and its impact on operating costs. \u201cFor the reason that starting of the conflict, all of the business […]<\/p>\n","protected":false},"author":1,"featured_media":336915,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[4339,51877,6155,2667,33620,24367],"class_list":["post-336914","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-adopts","tag-crisisresponse","tag-measures","tag-oil","tag-pressures","tag-urc"],"aioseo_notices":[{"message":"The permalink for this post just changed! 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