Universal Robina Corporation (URC), the Gokongwei Group’s food and beverage manufacturer, reported a 12 percent decline in net income to P12.8 billion last year due to higher earnings from gain on land sale in 2022 while core profit actually increased. 

In a disclosure to the Philippine Stock Exchange, the firm said its core net income improved by 6 percent to P12.6 billion, driven by operating income growth but tempered by higher interest rates.

Sales for the year ended December 31, 2023 reached P158.4 billion, up 6 percent against a high base last year. 

URC noted that, both its Branded Consumer Foods (BCF) and the Agro-Industrial & Commodities (AIC) businesses continued their momentum into the fourth quarter, growing sequentially versus the previous quarter.

Operating income for the full year grew 14 percent from 2022, more than double topline growth, to close at P17.4 billion. Operating margins continue to expand, hitting 11 percent, driven by the company’s strategic pricing moves and continued operational savings. 

URC said its financial position remains strong, with a healthy cash balance of P12.2 billion, net debt of P13.4 billion, and a gearing ratio of 0.23.

The firm is putting up a new production plant in Malvar, Batangas that will produce many of the new products the firm will introduce in the coming years.

“This mega plant will feature state-of-the-art manufacturing technology – from the way it will be constructed all the way to how it will be operated,” said URC President and CEO Irwin C. Lee.

Construction of the manufacturing plant will begin this year and expansion will span some 10 to 15 years. URC did not disclose the project cost.

When completed, the new plant will cover an area of 30.7 hectares and employ some 3,000 workers directly and indirectly while its high-end technology will optimize use of resources.

“The manufacturing lines to be installed in Malvar will incorporate design improvements that will further reduce material resource inputs, production wastage, labor efforts, and energy as well as water consumption,” Lee said.

It will have solar panels to generate power, and the buildings will make use of as much natural lighting and ventilation as possible. It will also maximize recovery of rainwater and reuse of wastewater

URC has been pivoting towards making renewable energy take up a bigger share in its power use. It has been installing solar panels at several of its facilities in the Philippines, and in its manufacturing hubs in Thailand and Vietnam.

“We look forward to building a healthy relationship with the people of Malvar. We also look forward to doing our part in economic development and nation building by providing jobs to the residents of Malvar, and the rest of the country, with the full build-out of this manufacturing facility,” said Lee.