URC profit up 12% to P14.5B

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UNIVERSAL Robina Corp. (URC) reported a 12% increase in its 2022 net income to P14.5 billion, driven by a strong topline, price increases, and cost-saving initiatives by the listed food company.

“We have closed out the year strong, turning in a record performance across all our business units, and surging well above pre-pandemic levels,” said URC President and Chief Executive Officer Erwin C. Lee in a disclosure to the stock market on Monday.

In 2022, sales rose by 28% to P149.9 billion due to the momentum of reopening economies in the region.

“The structural work we have done over the last few years has allowed us to capitalize on the growth opportunities from the reopening of the economy in 2022,” Mr. Lee said.

The company’s operating income increased by 20% to P15.2 billion compared to the previous year.

Sales of the branded consumer foods group went up by 29% to P105.9 billion, while its revenues rose by 23% to P73.6 billion.

URC’s international division registered a 17% revenue increase to P32.3 billion due to economic reopening in the region.

The agro-industrial and commodities division reported a 26% sales growth to P42.1 billion, driven by strong sales of animal and pet food.

Flour, sugar, and renewables also posted growth due to higher selling prices but saw double-digit declines in volume due to supply issues “brought about by the global wheat market volatility, more severe typhoon impacts, and lower milling outputs.”

“In the coming year, we will continue to execute our plans to keep our margin recovery on track,” Mr. Lee said.

“We remain confident that the strength of our portfolio of ‘Products and Brands that People Love’ will continue to drive growth into 2023 and beyond, as we stay true to our purpose of providing good food choices for consumers,” he added.

At the stock exchange on Monday, URC shares rose by 0.07% or 10 centavos to close at P135.10 apiece. — Adrian H. Halili