GOKONGWEI-LED Universal Robina Corp. (URC) reported a 53.7% decline in its third-quarter attributable net income, falling to P1.42 billion from P3.07 billion in the same period last year, due to weaker sales volume and lower foreign exchange gains.
Third-quarter sales fell by 1.8% to P38.14 billion from P38.84 billion in 2023, URC said in a regulatory filing on Tuesday.
For the first nine months, URC saw a 17.6% drop in its attributable net income to P8.02 billion from P9.74 billion last year. Core net income fell by 5% due to higher tax provisions and finance costs.
Sales improved by 1% to P118.88 billion from P117.16 billion last year.
Operating income shrank by 3% to P12.3 billion amid lower profits from its sugar and renewables business, as sugar prices continued easing in 2024 against last year’s record highs.
Sales for the branded consumer foods (BCF) group rose by 2% to P81.8 billion.
BCF Philippines generated P55.9 billion in sales, flat versus last year, as the momentum of ready-to-drink beverages and bakery was able to offset declines in coffee and confectionery. The company sold more lower-value products, as consumers continued to prioritize value-for-money offerings.
BCF International rose by 9% to P25.9 billion on a constant currency basis. All international business units saw volume and value growth as well as market share gains, despite the weak consumer sentiment across the region.
The agro-industrial and commodities group saw a 2% increase in revenue to P36.2 billion as volume growth was offset by price adjustments across most businesses.
Revenue growth was tempered by lower hog feed volumes, as the country’s hog population continues to be affected by disease outbreaks.
“As we begin to see early signs of a resurgent Philippine shopper in 2025, we will continue to offer the best value to our consumers through our wide portfolio of quality brands, while delivering the best value to our stakeholders by sustaining the company’s strong performance,” URC President and Chief Executive Officer Irwin C. Lee said.
“We will continue providing accessible choices to everyone across price points and trade channels, as we believe that everyone deserves to be delighted with good food choices,” he added.
URC shares fell by 5.42% or P5.2 to P90.75 per share on Tuesday. — Revin Mikhael D. Ochave