URC Posts P8.5B On Land Sale, CREATE Law

Universal Robina Corporation (URC) announced a 5% increase in dividends and a share buy-back plan for 2021 on the back of higher net income and a significantly stronger cash position.

Photo Insert: URC emerged from the 2nd half in a strong position

In a disclosure to the Philippine Stock Exchange, URC said that for the first half of 2021, URC reported net income after tax of Php 8.5 billion, up 42% versus the same period last year, due to a one-time gain from the sale of idle land as well as benefits from the Comprehensive Recovery and Tax Incentives for Enterprises (CREATE) Act.

URC’s strong financial position is also expected to be further bolstered by cash proceeds from the sale of its remaining 60% stake in the Unisnack Oceania joint venture when regulatory approvals are completed.

At the end of the first half of 2021, URC’s balance sheet had a healthy cash balance of Php 17.3 billion, net debt of Php 26.3 billion, and a low gearing ratio of 0.42.

With continued strong cash flow foreseen, URC is raising 2021 dividends to Php 3.30 per share versus Php 3.15 per share in recent years. In addition, returns to shareholders will be increased through a share buy-back plan initially targeted at Php 3 billion.

URC’s operating results continue to be solid. Net sales for the six months ending June 30, 2021, reached Php 68.5 billion, a 2% increase compared to the same period last year, driven by the continued recovery of the international business units and growth from the commodities division.

Operating income for the same period held at Php 8.2 billion, same versus last year, as pricing initiatives and cost savings were able to partially offset increasing input costs and changes in the mix.

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