Sugar, renewables drag URC income down 2% to P12.5B

GOKONGWEI-LED food and beverage manufacturer Universal Robina Corp. (URC) saw its net income decline by 2% to P12.5 billion in 2024 from P12.8 billion in 2023, weighed down by lower profit from its sugar and renewables segment.

Sales rose by 3% to P161.9 billion on volume growth across all divisions, URC said in a regulatory filing on Monday.

Operating income dropped by 4% to P16.7 billion due to weaker profits from the sugar and renewables business, following a windfall in 2023. Core net income likewise declined by 3% to P12.2 billion.

URC’s branded consumer foods (BCF) segment posted a 2% sales increase to P109.5 billion.

BCF Philippines sales remained flat at P74.7 billion as value-for-money items outpaced the rest of the portfolio.

BCF International recorded an 8% sales growth to P34.8 billion, driven by strong volume and value expansion despite generally tepid consumer sentiment across Southeast Asia.

Sales from the agro-industrial and commodities group rose by 5% to P51.3 billion, as higher volumes across most segments offset price adjustments in feeds and flour.

URC also declared a dividend of P2 per share for stockholders on record as of April 11, with payout set for May 9. The figure is 5% higher than in the same period last year.

“We delivered strong cash generation and dividend growth while pivoting to stronger volume growth recovery, as consumer sentiments improve after absorbing multi-year inflationary pressures,” URC President and Chief Executive Officer Irwin C. Lee said.

“We expect further improvements in URC’s growth momentum going forward as we continue to provide new product innovations and better value offers to delight our customers and consumers with good food choices,” he added.

URC has earmarked over P8 billion for capital expenditures this year to support its growth plans.

On Monday, URC shares gained 1.12% or 80 centavos to close at P72.30 apiece. — Revin Mikhael D. Ochave