Universal Robina posts 3% net income increase in Q1 2019
MANILA, Philippines – Listed food and beverage maker Universal Robina Corporation (URC) saw its net income grow by 3% to P3.1 billion in the 1st quarter of 2019 from a year ago, despite lower foreign exchange and higher finance cost.
In a disclosure to the Philippine Stock Exchange on Thursday, May 2, the food and beverage arm of JG Summit Holdings said it ended the 1st quarter with P33.3 billion in net sales, 7% higher from a year ago due to healthier domestic demand.
Operating income, which excludes valuation from the hogs market, also went up by 10% to P4 billion from last year.
The branded consumer foods segment ended the 1st quarter with P25.7 billion in sales, up by 5% from 2018. Domestic sales grew by 11% year-on-year to P15.6 billion as coffee sales recovered after a 3-year decline.
International sales, however, slid by 3% year-on-year to P10.2 billion due to foreign exchange devaluation in Australia and New Zealand. Operation income in international operations still went up by 5% year-on-year.
The agro-industrial and commodities segment ended the first 3 months with 16% increase in sales from a year ago to P7.2 billion.
Sales from the agro-industrial line went up by 21% due to more feeds sales, while the commodities division went up by 13% with higher flour and pasta sales.
URC president and chief executive officer Irwin Lee credited their 1st quarter performance to previously implemented "transformation plans" which began to gain traction despite the challenging environment.
Lee was referring to the company's Environment, Social, and Governance program, which outlines URC's sustainability targets. (READ: Single-use plastics, still the environment's number 1 enemy)
Aside from advocating for better livelihood and nutrition, the company is aiming to reduce its use of energy and water by 30% and shift to more recyclable packaging.
"This transformation is in line with our vision for URC to become a preeminent sustainable enterprise," Lee added.
"We will continue to deliver value for the business while at the same time, do what is right for society. We believe we can continue to do well by doing good." – Rappler.com