Universal Robina Corporation Sustains Double-Digit Profit Growth, Reported 10% Increase for the H1-2024

​Universal Robina Corporation (URC) reported sales of P80.7 billion for the first six months ending June 30, 2024, up 3% vs. the same period last year, with all business units posting higher sales volumes.

​Operating income growth outpaced topline, increasing by 10% vs. the same period last year to end the first half at P9.4 billion. The company’s thrust for margin improvement continued on the back of easing commodity costs and the strong results from the company’s cost savings programs. Net income from continuing operations was up 8% to P7.6 billion on higher operating income, and impairments in last year’s base. Core net income grew 5% to P6.7 billion, with higher tax provisions offsetting operating income growth.

URC also disclosed its strategic exit from China, where it operates cereals and snacks businesses. Manufacturing and selling have ceased, with the full closure expected by 2025. This will allow URC to redeploy resources to higher-growth markets across the region.

URC likewise announced its second dividend for the year, declaring a P1.90/share dividend to stockholders on record as of August 30, 2024. Payout is expected on September 25, 2024. With this announcement, URC has increased its yearly dividend per share by 5% per year over the past 4 years.

Sales Performance Per Business

Branded Consumer Foods (BCF)

Sales for the BCF group, excluding Packaging and China, ended at P54.7 billion for the first half, up 2% vs. the same period last year. BCF Philippines grew 1%, to close the half at P37.6 billion in sales. The business was able to post volume-led growth despite a high base in 2023, and amidst weaker consumer sentiment. Overall value growth was impacted by product mix, as value segments and brands grew faster than the rest of the portfolio. BCF International sustained its strong growth momentum, up 8% on a constant currency basis, to reach P17.1 billion in revenues. Key markets continued to deliver growth despite the overall macroeconomic weakness across Southeast Asia.

Agro-Industrial & Commodities (AIC)

The Agro-Industrial & Commodities group posted sales of P25.5 billion, up 7% vs. the same period last year, with topline growth driven by higher volumes, tempered by significant price decreases for both sugar and flour.

Strength of the Portfolio Delivering Growth and Value Creation

Irwin Lee, URC President and CEO, said, “Against a challenged macroeconomic landscape, URC delivered volume-led growth and strong profits. The strength of our wide portfolio allows us to continue delighting our consumers with good food and beverages choices, while also enabling us to reward shareholders with steadily increasing dividends. We look forward to the continued recovery of consumer sentiment in the balance of the year.”