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Better than expected: Universal Robina earnings up 13% in H1 2020

Ralf Rivas
Better than expected: Universal Robina earnings up 13% in H1 2020
After a beating in the 1st quarter, Universal Robina bounces back through steady sales and lower foreign exchange losses in the 2nd quarter

Profits of Universal Robina Corporation (URC) were up by 13% in the 1st half of 2020, driven by steady sales and lower foreign exchange losses.

In a disclosure to the Philippine Stock Exchange on Monday, August 3, URC reported a net income of P6 billion.

For the 2nd quarter, URC’s profits grew 76% to P3.8 billion, while net sales inched up by 1% to P34 billion.

From January to June, net sales continued to hold up at P67.4 billion, with “better than expected” profits from the company’s food, snacks, and agro-industrial businesses.

“The current uncertainty driven by COVID-19 is still evolving but we
are motivated by the fact that business results in the 1st half turned out better than our severe lockdown forecasts. While we have business continuity plans quickly set in motion, we were bracing for the worst due
to quarantine restrictions, supply chain disruptions, and fast demand shifts,” said URC president and chief executive officer Erwin Lee.

Its branded consumer foods business posted a 2% growth in domestic sales, as Filipinos bought snacks, coffee, and noodles during the coronavirus pandemic. However, international sales dropped by 3%.

URC makes and distributes popular snacks like Chippy and Chiz Curls, Nissin Cup Noodles, and Blend 45 coffee.

Its agro-industrial business posted a 13% increase in sales to P16.5 billion.

“Managing through this crisis requires continued vigilance, agility, and flexibility. While we may have weathered the first wave of this crisis, we must continue securing the here and now, while also preparing for the recovery efforts for the balance of the year and beyond,” Lee said. – Rappler.com

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Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.