URC to spend P8-B for expansion, investments in 2013
MANILA, Philippines – The food and beverage maker of the Gokongwei group will spend P8 billion for expansion and investments this year as it continues to enjoy strong product sales.
Universal Robina Corp. of JG Summit Holdings Inc. said P4.3 billion of the amount would be spent to expand the capacities of its snack and other grocery products, and upgrade existing beverage facilities in the Philippines.
It will also go the company’s operations overseas. The company will expand its snack, chocolate and biscuit lines in Thailand, Indonesia and Malaysia, and put up new beverage and bakery lines in Vietnam.
The commodity division will get P445 million for capital expenditures, and the feeds division will receive a budget of P250 million.
URC has also set aside P1 billion for the ongoing construction of its ethanol production plant in Mahhuyod, Negros Occidental that will complement its sugar milling business.
Another P2 billion will be invested in a 40-megawatt biomass-fired generation facility in Kabankalan, Negros Occidental. The facility is expected to be completed by 2015.
URC booked a net income of P7.73 billion in its fiscal year 2012, 67% higher than the P4.63 billion it recorded in the previous year, thanks to strong sales.
The robust performance of the beverage group boosted the company's domestic operations, which saw a 16.2% jump in sales to P43.3 billion.
International sales went up 5% to P20.1 billion, driven mainly by operations in Vietnam, which accounted for a 42.8% share.
URC’s latest fiscal year ended in September 2012. – Rappler.com