Universal Robina Corporation’s (URC) sales for the year ended December 31, 2023 reached Php 158.4 billion, up 6% against a high base last year. Both the Branded Consumer Foods (BCF) and the Agro-Industrial & Commodities (AIC) businesses continued their momentum into the fourth quarter, growing sequentially versus the previous quarter.
Operating income for the full year grew 14% vs. last year, more than double topline growth, to close at Php 17.4 billion. Operating margins continue to expand, hitting 11%, driven by the company’s strategic pricing moves and continued operational savings. Net income for the full year ended at Php 12.8 billion, down 12% vs. the same period last year, due to higher comparables from gain on land sale last year. URC’s core net income increased by 6% to Php 12.6 billion, driven by operating income growth but tempered by higher interest rates.
URC’s financial position remains strong, with a healthy cash balance of Php12.2 billion, net debt of Php13.4 billion, and a gearing ratio of 0.23.
SALES PERFORMANCE PER BUSINESS
Branded Consumer Foods (BCF): Sales for the BCF group, excluding Packaging, ended at Php 108.4 billion for the total year, growing 2% vs. the same period last year. BCF Philippines grew 3% vs. the same period last year and sequentially vs. the prior quarter, delivering Php 75.6 billion in revenues. Categories showed mixed performance, with Snacks and Ready-to-Drink beverages driving growth, offsetting challenges in some segments. BCF International closed the year at Php 32.8 billion in revenues, growing by 2% vs. the same period last year, on the back of the performance of Vietnam and Malaysia. Sequential quarter-on-quarter growth was seen in Thailand and Indonesia as they recovered from price corrections executed earlier this year.
Agro-Industrial & Commodities (AIC): The Agro-Industrial & Commodities group continued to outperform, ending the year at Php 48.8 billion in sales, up 16% vs. the same period last year. All three businesses – Agro-Industrial Group, Sugar and Renewables, and Flour – maintained their double-digit growth driven by higher volumes, favorable sugar prices, and continued growth of Pet Food.
PURPOSEFUL STRATEGIC CHOICES TO SUPPORT GROWTH
Irwin Lee, URC President and CEO, said, “Over the past few years the company has made purposeful strategic decisions to enter new segments outside our core categories in the Philippines and to build new legs in International, all of which we are seeing come to fruition. We have also continued to make good progress in our Fuel for Growth program, surpassing our initial commitments on operational efficiencies and savings. These initiatives will allow us to continue delivering on our mission – to provide our consumers with good food and beverage choices for the years to come.”
This press release may contain forward looking statements with respect to the results of operations and business of Universal Robina Corporation ("URC"). Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance of URC to be different from any future performance implied.
