- 9M sales and profits up
- Slowdown in growth from domestic branded foods
- International sales up on organic growth and M&A
Universal Robina Corp., the Philippines-based consumer goods group, saw sales and earnings rise in the first nine months of its financial year – but domestic sales growth slowed in the third quarter.
For the nine months to the end of June, the company booked a 10.9% increase in sales from branded consumer foods business in the Philippines to PHP43.14bn (US$931.7m). URC pointed to "mixed results" from its snacks business, with salty snacks sales rising at a double-digit rate but its bakery and confectionery sales up in the "low single digits". The group said its ready-to-drink beverage unit also saw slower growth amid capacity constraints.
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In the first half of URC's financial year, the company saw sales from its domestic branded consumer foods arm rise 15.7%.
Group-wide sales for the nine-month period were up 18.3% at PHP81.94bn. URC's consumer foods business outside the Philippines saw sales jump over 38% thanks to growth in Indonesia, Thailand and Vietnam, as well as the company starting to consolidate sales from New Zealand snacks business Griffin's, which it acquired last autumn.
Net profit was up 11.8% at PHP9.65bn. Operating income increased 24.1% to PHP13.06bn thanks to the margin boost from branded foods, plus lower prices of commodities including palm oil. URC said the growth in its net income lagged its operating income due to higher finance costs, losses from newly-started ventures with Calbee and Danone, plus foreign exchange losses in Indonesia.
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By GlobalData
