Universal Robina Corporation (URC) posted sales of Php 78.6 billion for the first six months ending June 30, 2023, up 11% vs. the same period last year, and sustaining its growth momentum from 2022. All businesses continued to grow, signaling resilient consumer demand across the region.
Operating income for the first half improved faster than topline, increasing 16% vs. the same period last year to hit Php8.6 billion. Growth for the second quarter accelerated to 18%. Margins expanded versus last year despite generally higher commodity costs, as the company saw the full year impact of the necessary pricing moves executed in 2022. Net income was up 8% at Php 7.0 billion, with the second quarter recording an 18% increase, in line with operating income growth. Core net income was up 11% versus same period last year.
URC’s financial position remains strong, with a healthy cash balance of Php11.4 billion, net debt of Php8.6 billion and a low gearing ratio of 0.18.
SALES PERFORMANCE PER BUSINESS
Branded Consumer Foods (BCF): The domestic and international branded consumer foods group, excluding Packaging, recorded sales of Php 54.1 billion for the first half of the year. BCF Philippines grew by 7% versus the same period last year, ending at Php 37.4 billion in revenues. BCF International continued to expand, growing by 7% vs. last year to close the period at Php 16.8 billion. Vietnam, Malaysia, and Myanmar continued to drive the growth of the division.
Agro-Industrial & Commodities (AIC): Sales of the Agro-Industrial & Commodities divisions reached Php 23.8 billion, accelerating growth to 23% versus the same period last year, driven by Sugar and Renewables on the back of higher selling prices and the Agro-Industrial Group with its strong feeds sales.
CONTINUED STRONG PERFORMANCE IN 2023
Irwin Lee, URC President and CEO, said, “We are pleased that the company has maintained its sales momentum while showing improving margins against last year, despite higher input costs and inflationary pressures. The company will continue to prioritize profitable growth on the back of our strong brands and consistent operating discipline. No matter the external environment, URC takes pride in continuously delighting consumers with good food choices.”
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.
