URC Discloses 20% First Quarter Sales And Net Income Increase

For the three months ending March 31, 2022, Universal Robina Corporation (URC) grew net sales of continuing operations to Php 35.8 billion, up 22% versus the same period last year. This record-breaking performance was driven by the accelerating momentum of sales as its various business units delivered sterling performances across the board, as demand for its products improved amidst the retreat of the pandemic.

Photo Insert: URC’s financial position remains strong, with a healthy cash balance of Php 16.1 billion and a low gearing ratio of 0.17.

In the first quarter of 2022, URC recorded Php 3.6 billion in net income from continuing operations, up 20% versus the same period last year. This performance was driven by resilient growth in operating income and foreign exchange gains for the quarter.

Operating income of Php 4.1 billion increased by 5% versus the same period last year as the company managed to grow the bottom line despite unprecedented cost pressures from spiking commodity prices, driven by global supply chain challenges and geopolitical tensions.

URC’s financial position remains strong, with a healthy cash balance of Php 16.1 billion and a low gearing ratio of 0.17. The company paid out Php 7.6 billion in dividends on April 29, an increase of 5% versus the previously declared dividend in 2021.

Sales Performance Per Business

Branded Consumer Foods (BCF): Sales of domestic and international branded consumer foods, including Packaging, amounted to Php 25.4 billion. BCF Philippines recorded its highest monthly and quarterly sales in history as domestic revenues grew by 15% to close at Php 17.6 billion, as consumer demand improved on the back of the reopening of the economy.

International revenues hit Php 7.8 billion, up 41% versus last year, driven by the strong momentum of Indonesia, Thailand, and Vietnam, and the consolidation of Munchy’s, its newest acquisition in Malaysia.

Agro-Industrial & Commodities (AIC): Sales of our Agro-Industrial & Commodities divisions totaled Php 10.3 billion, or a 21% increase versus last year. Sugar, and Renewables and Flour grew on the back of higher selling prices. The Agro-Industrial Group hit double-digit growth on the recovery of feed volumes due to the country’s continuing hog repopulation, as well as record sales for its Pet Foods business.

Navigating Through Cost Challenges

Irwin Lee, URC President and CEO, said, “We are heartened by the accelerating growth trajectory of the company, as the economy has opened up and consumers see a return to normalcy. On the cost side, we continued to face challenges from volatile global commodity prices, which we expect to remain choppy throughout the year. Despite these headwinds, we will continue to serve our customers and consumers to the best of our abilities, staying agile and nimble through shifts in the market, and focus on our company’s purpose: to delight everyone with good food choices.”

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