UNIVERSAL Robina Corp. (URC) posted a 10-percent increase in core net income in the second quarter to P2.9 billion from P2.6 billion a year earlier, while net income from continuing operations jumped 25 percent to P3.0 billion.
The listed food manufacturer said growth in its branded consumer foods and animal nutrition businesses offset higher oil-related costs due to the Middle East war and continued weakness in the sugar business, resulting in a 2-percent increase in operating income.
Despite lower sugar volumes and prices, second-quarter sales increased 2 percent to P41.5 billion from P40.7 billion, bringing first-half revenue growth to 4 percent.
URC said revenue growth was driven by its branded consumer foods (BCF) and animal nutrition and health (ANH) businesses, supported by resilient core demand, sustained brand investments and the continued ramp up of its flour business, particularly at the Sariaya facility.
The BCF segment posted P29.4 billion in second-quarter sales, up 4 percent from P28.3 billion, with domestic BCF sales rising 3 percent to P20.1 billion from P19.5 billion, led by bakery and powdered beverages. International BCF sales, meanwhile, increased 8 percent in peso terms but declined 2 percent on a constant-currency basis.
The company’s agro-industrial and commodities segment recorded P12.1 billion in sales, down 3 percent from P12.5 billion a year earlier as growth in the animal nutrition and flour businesses was offset by lower sugar volumes and softer market prices.
Sales in the animal nutrition and health segment rose 20 percent, while flour sales increased 8 percent.
“Our second-quarter performance demonstrates the strength and balance of our portfolio,” URC President and CEO Irwin Lee said.
“Growth from our branded consumer and animal nutrition businesses, alongside improving contributions from flour, enabled us to deliver on our plans despite the anticipated softness in sugar. More importantly, we were able to manage disruption and cost impacts triggered by the ongoing conflict in the Middle East,” he added.
Lee said geopolitical tensions and inflationary pressures remained risks going forward but expressed confidence that URC’s strong brands, distribution network and disciplined operational execution would enable the company to sustain its competitive advantage in a volatile environment.
Shares of URC surged P1.70, or 2.91 percent, to close at P60.20 each on Thursday.
