As inflation continues to ease, the Gokongwei Group’s food and beverage unit Universal Robina Corporation reported that noted that consumers are now less likely to purchase cheaper alternatives to their preferred products.

“We are benefiting from more positive consumer sentiment in the Philippines with easing inflation,” said URC President and CEO Irwin Lee during the firm’s annual stockholders’ meeting.

He added that, “There is still some down-trading that is easing a little bit, but we are seeing, from our side, internally, continued volume growth and that is expected to carry through across the business units.”

After the firm posted stronger core earnings in the first quarter of 2025, Lee said “Our expectations is for this momentum to continue and, actually, accelerate. The interventions that we're seeing from the business units from past year, carrying forward into 2025, are bearing fruit.”

He noted though that, “There are some watch-outs on the uncertainties from international events like what's happening to the tariff environment. Nevertheless, we are prepared to to counteract any measures and any slowdowns. And the businesses are gearing up for continued strong growth momentum for the balance of 2025.”

URC disclosed that its core net income improved by four percent to ₱4.1 billion in the first quarter of 2025 with lower finance costs early in the year.

Net income from continuing operations closed at ₱4.3 billion, slightly behind last year by two percent, due to higher forex gains in the first quarter of 2024.

The firm posted sales of ₱45.3 billion for the three months ending March 31, 2025, up seven percent versus. the same period last year, and started the fiscal year with strong volume-led growth across most of its divisions.

Total operating income for the first quarter of 2025 ended at ₱5.5 billion, growing by one percent from the same period last year and in line with expectations.

The total Branded Consumer Foods (BCF) business delivered high single-digit operating income growth, on the back of a sterling performance from URC International.

This offset expected declines in Agro-Industrial Commodities (AIC) profits against its higher base early last year.

Sales for the BCF group ended at ₱29.7 billion for the first quarter, up six percent from the same period last year.

BCF Philippines sales closed at ₱20.1 billion, growing four percent against the peak quarterly sales recorded last year, and delivering strong double-digit volume growth in Ready-to-drink (RTD) Beverages, Snacks, and Confectionery.

BCF International recorded sales of Php9.6 billion, up 10 percent from the same period last year. Vietnam led the way with strong double-digit growth, while Malaysia and Indonesia showed steady topline improvements.

The international business continued to sustain its momentum and deliver above- market growth, despite the weak ASEAN sentiment and tariff uncertainties in export-oriented economies.

The AIC group recorded ₱15.6 billion in sales for the first quarter, growing eight percent against the same period last year.

Higher sales volumes from the sugar and flour businesses helped offset weaker animal feed sales, which were affected by lower sales volumes as Philippine hog populations declined from the middle of last year.