URC profit rises on asset sale

Published October 29, 2021, 3:58 PM

by James A. Loyola

Universal Robina Corporation, the food and beverage unit of JG Summit Holdings Inc., reported a 40 percent jump in attributable net income to P10.52 billion for the first nine months of 2021 from the P7.5 billion earned in the same period last year.

In a disclosure to the Phiippine Stock Exchange, the firm said its core earnings before tax dipped 5 percent to P10.29 billion from the P10.83 billion recorded in the same period last year.

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URC recorded higher non-operating net income of P2.66 billion other income for the nine months of 2021 from P575 million other expense for the nine months of 2020 due to gain on sale of fixed assets this year.

The firm recently sold its controlling stake in Australian joint venture firm Unisnack ANZ to minority partner The Intersnack Group, one of the leading manufacturers of savoury snacks in Europe.

URC generated a consolidated sale of goods and services of P85.797 billion for the nine months ended September 30, 2021, 0.8 percent higher than same period last year.

Sale of goods and services in URC’s branded consumer food (BCF) segment, excluding packaging division, decreased by 2.5 percent to P60.37 billion for the nine months of 2021 from P61.9 billion registered in the same period last year.

BCF domestic operations posted a 4.9 percent decrease in net sales from P46.54 billion for the nine months of 2020 to P44.24 billion for the nine months of 2021, still driven by high base fueled by pantry stock up with Taal eruption and the start of pandemic shifting household spending to pantry essentials.

Economic environment also affected consumer behavior as seen in the category declines.

URC export products

BCF international operations reported a 5.0 percent increase in net sales from P15.36 billion for the nine months of 2020 to P16.13 billion for the nine months of 2021, coming from strong sales momentum being carried into third quarter with major markets growing versus last year.

In constant US dollar (US$) terms, sales increased by 6.7 percent driven by Indo-China and Indonesia despite COVID challenges.

Vietnam significantly grew by 17.7 percent driven by resurgence in beverage sales particularly C2 while Thailand recovered with 8.2 percent sales growth coming from strong domestic performance.

Sale of goods and services of BCF, excluding packaging division, accounted for 70.4 percent of total URC consolidated sale of goods and services for the nine months of 2021.

URC’s packaging division increased sales by 37.8 percent to P1.19 billion for the nine months of 2021 from P860 million recorded in the same period last year due to better prices and strong volumes.

Sales URC’s agro-industrial group (AIG) amounted to P8.54 billion for the nine months of 2021, a decline of 7.4 percent from P9.22 billion recorded in the same period last year.

The Feeds business posted a 1.1 percent increase while Farms business decreased by 42.4 percent as result of downsized operations.

URC’s commodity foods group’s sales amounted to P15.71 billion for the nine months of 2021, a 19.7 percent increase from P13.12 billion reported in the same period last year.

Sugar and renewables business grew by 25.8 percent due to higher volumes of sugar and distillery with the integration of La Carlota operations. Flour business posted a 3.5 percent increase due to better prices and improved volumes.

 
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