UNIVERSAL Robina Corp. (URC) on Thursday reported a slight dip in net income for the first quarter despite strong sales, which the Gokongwei-led retail firm attributed in part to a lower distillery utilization rate and softer sugar prices.
In a disclosure, URC said first-quarter sales climbed six percent year on year to P47.9 billion, lifted by broad-based volume growth in its domestic branded consumer foods (BCF) segment alongside solid contributions from the animal nutrition and flour businesses.
Branded consumer foods remained the main growth driver, with sales rising nine percent to P32.2 billion by end-March.
Revenue from the Philippines grew 10 percent to P22.0 billion, supported by sustained consumer demand, volume expansion and the lingering impact of last year’s pricing adjustments.
International operations saw sales jump six percent to P10.2 billion, anchored by steady performance in key markets, particularly Malaysia, where the Munchy’s business continued to deliver gains.
The agro-industrial and commodities (AIC) segment posted flat sales of P15.7 billion, while animal nutrition and health business revenues surged 22 percent compared to the same period last year.
Flour revenues recorded strong double-digit growth of 17 percent amid ramped-up output from the Sariaya flour mill, which helped offset the weaker performance in sugar and renewables amid a lower distillery utilization rate and a decline in sugar prices.
Despite the firmer top line, operating income slipped 2 percent to P5.4 billion, while net income from continuing operations declined four percent to P4.1 billion.
Core net income attributable to the parent also eased two percent to P3.8 billion, broadly tracking the movement in operating income.
URC President and CEO Irwin Lee said the first-quarter result reflected “strong, volume-led growth” particularly in the Philippines, adding that execution across key segments remained solid.
“We are balancing targeted demand support with margin recovery,” Lee said. “We remain mindful that any inflationary spillover from the Middle East conflict could pressure consumer demand, and we will stay agile — managing pricing, mix, and costs carefully to sustain momentum.”
URC said it would continue to monitor cost pressures and external risks while focusing on sustaining demand growth and operational efficiency across its portfolio.
The company’s shares rose P0.50, or 0.81 percent, to P62.00 each on Thursday, tracking a firmer broader market, with the benchmark Philippine Stock Exchange index closing up 1.12 percent.
