Universal Robina Corporation (URC), the food and beverage unit of the Gokongwei Group, reported a 13.4 percent drop in net income to P9.72 billion for the first nine months of 2022 from the P11.23 billion booked in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said the decline is due primarily to a sale of assets booked last year. Core net income (excluding one-offs) was up 9 percent, in line with operating income growth.

Sales for the first nine months of 2022 reached P107.9 billion, up 26 percent versus P85.8 billion in the same period last year.

Operating income for the nine-month period grew by 10 percent to P10.8 billion. Absolute profits grew as planned on the back of higher sales volumes, programmed price increases, and executed cost savings initiatives.

Sales of domestic and international branded consumer foods (BCF), excluding Packaging, accelerated its momentum into the third quarter as BCF Philippines continued to break sales records, once again posting its highest monthly and quarterly sales in history for the third quarter in a row.

Revenues for the first nine months hit P54.0 billion, increasing by 22 percent from the same period last year. Most categories exhibited strong growth, with strong sales offtake and healthy inventory levels seen in the trade.

The International business units performed similarly, with total revenues (including Munchy’s) reaching P24.4 billion, up 51 percent versus last year.

The core international business (excluding Munchy’s) grew 24 percent, with all manufacturing businesses growing at double digit rates against lower comparables from the COVID-19 Delta surge last year.

Sales at the Agro-Industrial & Commodities divisions grew by 15 percent to end at P28.0 billion for the nine months of 2022. The growth of the Agro-Industrial Group was driven by strong sales of feeds, with both the core animal feeds and the pet foods businesses performing well.

The Commodities Group of flour, sugar and renewables also grew overall sales due to higher prices; but declined in volumes due to supply challenges brought about by the global wheat market volatility, more severe typhoon impacts, and lower milling outputs.

“We are delighted by the continued growth momentum over the last nine months. We will continue to execute our plans to keep our margin recovery on track despite the challenges on all fronts, notably inflationary pressures from volatile commodity costs and the strength of the US dollar,” said URC President and CEO Irwin Lee.

He added that, “We remain confident that the strength of our core products, along with our successful new launches, will continue to provide value for our consumers and drive growth into 2023 and beyond.”