Philippines' URC net income surges 109% YoY to $465.4m in 2021

This is on the back of the sale of its Oceania business. 

Philippines-based consumer food and beverage products firm Universal Robina Corporation (URC) reported a 109% year-on-year (YoY) increase on net income in its unaudited results for 2021, reaching $465.4m (P24.3b), driven by the sale of its Oceania business.

In a disclosure to the stock exchange, said the sale of Oceania enabled the company to monetise the efficiencies and synergies created in Australia and New Zealand, whilst reinvesting into higher-growth core markets such as the Munchy’s business that was recently acquired in Malaysia.

Excluding sales from Oceania, URC posted a 3% YoY growth on sales, reaching $2.2b (P117b), amidst mobility restrictions, consumer sentiment, supply chain disruption, and COVID-19 Delta variant wave.

However, the company saw its sales momentum accelerate in the second half of the year, with sales in the last three months increasing 12% compared to the previous quarter, and 11% compared to 2020, according to URC.

Operating income and core net income from continuing operations, on the other hand, declined by 8% “as record commodity prices translated into higher material input costs. The impact on operating margins, meanwhile, was tempered by price increases and different cost saving efforts, it said.

Irwin Lee, URC President and CEO, said, “Coming through two years of the COVID-19 pandemic, URC remained strong – maintaining our leading positions in key markets and categories, continuing our innovation pipeline, becoming preferred partner of choice to customers and suppliers, step changing product supply chain transformation, and accelerating a people and planet friendly culture,” URC President and CEO Irwin Lee said.

“While the challenges and uncertainties of hyper cost inflation, global climate and political turbulence persist, our growth momentum and organisational commitment to excellence give us cause for optimism in 2022. We will continue to invest in our brands, build channel strength, make future bets in attractive white spaces, and operate efficiently and sustainably, all towards future-proofing our growth. URC remains strong today, and will be stronger tomorrow,” he added. 

$1 = P52.21