URC core profit jumps 21% to P2.4 in Q3

Universal Robina Corp. (URC) reported a 10-percent increase in third-quarter net income from continuing operations to P2.6 billion, while core net income attributable to the parent company climbed 21 percent to P2.4 billion, supported by stronger operating performance and lower financing costs.

Operating income grew 14 percent year-on-year, outpacing sales growth as improved margins in its international business, better coffee economics, higher flour contribution and stronger sugar and renewables profitability offset increased oil-related expenses.

Third-quarter sales reached P41.4 billion, up 7 percent from the same period last year. This brought revenues for the first nine months to P130.7 billion, a 5-percent increase.

URC President and CEO Irwin Lee said the results reflected the company’s business model, supported by its brands, distribution network and presence across Southeast Asia.

“Our third-quarter performance demonstrates our ability to deliver on our commitments and reflects the strength of URC’s business model,” Lee said. He added that the company would continue investing in its brands, distribution and operational capabilities while maintaining discipline in pricing, costs and capital allocation.

Branded Consumer Foods recorded third-quarter sales of P30 billion, up 7 percent. Its Philippine business grew 3 percent to P20 billion, while international sales increased 16 percent in peso terms to P10 billion, supported by recovery in Vietnam and continued growth in Malaysia.

The Agro-Industrial and Commodities group posted sales of P11.4 billion, up 6 percent, driven by animal nutrition and health products and flour.

URC said recovering demand in animal nutrition, continued growth in cat food and increased flour sales helped offset weaker sugar volumes and lower market prices.

The company said it would continue pursuing profitable growth and strengthening cash generation amid persistent market pressures.