Universal Robina Corporation (URC), a major snacks manufacturer in the country, is "cautiously optimistic" about profit growth this year as prices of certain raw materials remain high.
URC president and chief executive officer Irwin Lee said these inputs include coffee and cocoa.
"Inflation continues to be high in selected input costs. Some of those still need to be addressed for internal cost savings," he said Monday night on the sidelines of an awards ceremony by an online magazine in Bonifacio Global City, Taguig.
Lee said it is possible to see "middle to high" topline growth as the government and the private sector continue to exchange insights on reducing the prices of major agricultural commodities.
Out of the overall average inflation of 3.2 percent last year, food and non-alcoholic beverages contributed 1.7 percentage points, according to the Philippine Statistics Authority.
Lee added that URC is reinvesting funds to enhance brands, human resources, and expand its production and distribution network.
"We are giving value to the consumers, whether that's in the form of better prices or better offerings," Lee said.
"There are signs of early green shoots, but we don't want to get ahead of ourselves," he added.
Lee said the national and local elections in May should help raise company revenues.
"Historically, there's always a bump whenever there is an election year. We're strong in snacks and other products that can be distributed during election-related activities," he said.
URC offers Swiss Miss, Jack 'n Jill, Blend 45, Nissin, and Vitasoy products, among others.
Through its cost-saving measures, Lee said URC has been able to reduce expenses by P1 billion in the past few years, translating into relatively affordable snacks and drinks.
In terms of capital expenditures, Lee said URC is considering continued spending of P8 to P10 billion. He said a substantial portion will be allocated to strengthening infrastructure capacity.
"We're looking at future capacity needs. We're probably going to invest ahead in some areas that we can prepare for in the next few years in places like Thailand and Malaysia," he said.