Universal Robina Corp., the biggest maker of snack foods, said Wednesday net income in the first six months of the fiscal year 2016 surged 29 percent to P8.3 billion on higher operating income and increased sales from branded consumer food business.
URC said in a regulatory filing with the Philippine Stock Exchange net sales rose 5.2 percent for the first six months of fiscal year beginning October 2015 and ending September 2016 to P58.538 billion, mainly driven by the core branded consumer foods group (BCFG).
The group’s domestic operations posted a 2.6-percent in net sales to P30.41 billion in the first half of 2016, mainly driven by the growth in ready-to-drink beverages and biscuits.
“Sales was muted due to slight decline in powdered beverages, which was affected by the slower growth of total coffee market. In addition, aggressive moves of competitors to recover or gain market shares was felt across all categories especially on snackfoods and coffee,” URC said.
The group’s international sales hit P17.454 billion, up 7.7 percent from last year’s P16.21 billion, driven by Indonesia, Vietnam, Malaysia and New Zealand.
Sales from Indonesia grew 25 percent while Vietnam increased 9 percent on the back of strong sales from C2 and Rong Do, which are both gaining shares in the market.
Sales in Malaysia rose 9.7 percent while those of Singapore increased 12 percent, driven by snacks and biscuits.
URC’s recently acquired Griffin’s business in New Zealand booked a good market share after the company took steps to expand its value faster than volume and improve its profitability.
Meanwhile, sales from non-branded consumer foods group grew 9.2 percent to P10.08 billion in the first six months, led by commodity foods group, which increased 17.4 percent, and sugar and renewables which expanded 30.8 percent.
The agro-industrial group’s sales were flat due to mixed results from its segments. While the feeds business increased 22.8 percent due to an increase in sales volume, the farms business decreased 17 percent due to a decline in volume and prices.