Food and beverage giant Universal Robina Corporation (URC) posted a net income of P8.1 billion in the first 9 months of 2020, 12% higher than in 2019, despite the coronavirus-stricken economy. 

Did URC beat the downtrend?

While there was growth, URC president and chief executive officer Irwin Lee himself admitted that the path to recovery would be slower than expected.

“The current environment continues to pose severe challenges to the business. Weaker consumer sentiment and slowing retail sales in Q3, plus sluggish macroeconomic fundamentals, are weighing on a slower path to market recovery,” Lee said.

Note that the government gradually opened up the economy in the 3rd quarter amid rising COVID-19 infections.

URC’s net income grew on the back of higher operating income, lower debt and interest expense, and lower foreign exchange losses.

Sales during the 9-month period reached P99.8 billion, 2% higher compared to the same period last year. 

But URC underscored that the pandemic has “deteriorated trading conditions and resulted in market contractions in several snack, food, and beverage categories the company competes in.” (READ: From malls to banks: The pandemic’s domino effect)

Domestic revenues of its branded consumer foods were up by just 1%, even as lockdown restrictions eased during the 3rd quarter. 

People bought more powdered beverages, snacks, biscuits, and chocolates, but double-digit declines were noted in candies, ready-to-drink beverages, and URC’s food service channel.

Meanwhile, the company’s international revenues declined by 7%.

URC’s agro-industrial business posted a 9% growth in sales, but it saw a decline in its hog business due to downsized operations.

“Despite these challenges, we remain focused on operational excellence, business transformation, and investing in building stronger brands and innovation to fuel growth,” Lee said.

“This focus is helping us perform ahead of market trends. More importantly, this enables us to continue supporting and partnering with our customers and suppliers to serve the needs of our consumers and communities in this time of crisis.” – Rappler.com