The sugar market took a bitter bite out of Universal Robina Corp.'s first-quarter profits, but don't cry for this food giant just yet—its branded foods are flying off shelves at a pace that would make any competitor jealous.
URC's core net income dipped 2% to P3.8 billion in the first three months of the year, a direct hit from sliding sugar prices that squeezed the company's commodities arm. Operating income followed suit, dropping to P5.4 billion.
But here's where the story gets interesting. While sugar profits soured, overall sales surged 6% to P47.9 billion, fueled by an explosion in volume from its branded consumer foods division in the Philippines. The company's new Sariaya flour mill also kicked into high gear, churning out production gains.
"We started the year with strong, volume-led growth, led by BCF Philippines, reflecting accelerating momentum and continued excellence in execution," said CEO Irwin C. Lee, his tone confident despite the headwinds.
Lee isn't just counting his blessings—he's watching the horizon like a hawk. The Middle East conflict looms as a potential storm, threatening to drive up costs and squeeze consumers. "We will stay agile—managing pricing, mix, and costs carefully to sustain momentum," he promised.
Branded Consumer Foods Philippines was the real star, posting a 10% jump to P22 billion on the back of broad-based volume growth and last year's strategic pricing moves. International operations weren't far behind, with sales climbing 6% to P10.2 billion, led by Malaysia's insatiable appetite for Munchy's snacks.
The Agro-Industrial & Commodities segment played a different tune, with sales flat at P15.7 billion. Animal Nutrition and Health roared ahead 22%, and Flour rose 17% as the Sariaya mill found its stride. But sugar and renewables? They stumbled, weighed down by lower distillery utilization rates.
Investors seemed to shrug off the profit dip, nudging URC shares up 0.81% to P62 by Thursday's close.
