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Universal Robina Corporation posts P4.485 billion net income in 2012 first quarter...

Universal Robina Corporation (URC) reported P4.485 billion net income in the first half of fiscal year 2012, an increase of 36.5% from P3.285 billion posted in the same period last year. The increase was due to significant improvement in market values of bond and equity holdings and lower foreign exchange loss from foreign currency denominated transactions.
URC also reported 6.6% sales growth in the first half of fiscal year 2012 (fiscal year beginning October 2011 and ending September 2012) with net sales and services amounting to P35.487 billion from P33.298 billion in the same period last year. Core sales of branded foods business remained buoyant and increased by 13.0% but this was offset by the decline in sales of the commodity foods group specifically sugar division as selling prices decreased compared to same period last year.

URC's operating income was P3.647 billion in the first half of fiscal year 2012, 4.5% lower from the P3.817 billion reported in the same period of fiscal 2011. This was mainly due to significantly lower selling prices of sugar and depressed prices for hogs. The low pork prices have significantly affected all the players in the industry and were primarily caused by excessive meat importation that caused oversupply in the market thus depressing prices; therefore, the company recorded a mark-to-market revaluation loss of P104 million on its biological assets during the period.

URC's balance sheet remains healthy with strong cash levels. As of the period, we are in a net cash of position of P3.051 billion. The company's financial gearing ratio is now at 0.36, from 0.47 in the first quarter as it retired the $200 million, 8.25% coupon bond it previously held last January 20, 2012.

Sales performances by business are as follows:

The company's branded consumer foods (BCF) segment, including the packaging division, increased sales of goods and services by P3.254 billion, or 13.%, to P28.029 billion in the first half of fiscal year 2012 from P24.775 billion in the first half of fiscal year 2011. Its branded foods domestic business grew faster at 13.7% to P16.565 billion from P14.596 billion in the same period last year. The growth was largely driven by the beverage division which grew by 41.5% on account of strong sales acceptance for new product, Great Taste White Coffee. For the snackfoods division, snacks and biscuits exhibited double digit growth. It managed to sustain the strong uptake for Mang Juan, its new brand in extruded/pelletized snacks segment. It continue to be the strong market leader for the salty snacks category and it is also building a strong market challenger position for the coffee mixes segment.

Sale of the company's international BCF business meanwhile increased by 13.2% in dollar terms, amounting to $244 million or P10.534 billion, due to increases in sales volume. This was supported by strong sales growth from China, Vietnam and Malaysia while Thailand experienced a temporary slowdown as an effect of the recent flooding.

URC's commodity foods group amounted to P3.821 billion in the first half of fiscal 2012, down by 27.6% from P5.275 billion in the same period last year. This was primarily due to 52.2% decline in net sales of sugar business as a result of lower volume and prices while flour business grew by 16.5% due to higher volume and selling prices in the same period last year.

Net sales of URC's agro-industrial group amounted to P3.637 billion for the first half of fiscal 2012, a 12.0% increase from last year. The feeds business grew by 14.4% on the back of higher sales volume and prices while farm business increased by 9.5% due to higher sales volume of hogs.

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"Universal Robina Corporation posts P4.485 billion net income in 2012 first quarter" was written by Mary under the Business category. It has been read 1923 times and generated 0 comments. The article was created on and updated on 16 May 2012.
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