Increased commodity costs have led to profits at Philippines-based food group Universal Robina Corp. falling over the first nine months of its fiscal year.

The company, which makes biscuits, snacks and confectionery, posted a 12.4% decrease in operating income to PHP772m (US$18.1m). It said the “global increase in commodity prices relative to last year’s prices eroded the company’s margins”.

URC saw net income drop 24.9% to PHP4.9bn during the nine months to the end of June due to the lower operating income and a fall in the market values of bond investments.

However, commodity prices did help URC’s sales. The company, which refines sugar, mills flour and farms hogs and poultry, reported “strong top-line growth”. It said net sales increased 17.7% to PHP42.96bn over the first nine months of the year.

URC pointed to the “outstanding performance of our international brands foods business” and the high price of sugar.

In the third quarter, URC saw its net income drop 13.9% to PHP1.66bn in the three months to the end of June. URC’s operating income was down 13.2% to PHP1.64bn.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The lower profits came despite a 2.1% rise in sales to PHP17.28bn.

Click here for the full statement from URC.