Universal Robina Corp., the largest snack food maker, said net income in the first three months of the year fell 12.4 percent to P2.95 billion from P3.37 billion recorded year-on-year on weak domestic sales.
URC said in a disclosure to the stock exchange first-quarter net sales inched up 1.6 percent to P31.2 billion from P30.6 billion on year.
Operating income declined 14 percent to P3.5 billion due to the weaker performance in the Philippines as a result of lower coffee sales volumes, higher inflation and foreign exchange devaluation.
URC said the bulk of the sales came from the group’s branded consumer food segment, which rose 1 percent to P25 billion
BCF Philippines revenues excluding packaging declined 5 percent at P14.3 billion, driven by the underperformance of snacks and total beverages as a result of lower volume in the coffee category.
“The implementation of the excise tax has affected volumes of C2 but value remained buoyant vs last year given the offset of the price adjustment we implemented in January,” URC said.
BCF international sales, meanwhile, rose 10 percent to P10.8 billion driven by the recovery in Vietnam and growth of snack brands Australia.
In local currency terms, sales in Thailand fell 4 percent as a result of the reduced confectionery exports to Cambodia despite the growth of biscuits in the domestic market.
Malaysia sales increased 8 percent driven by the growth in snacks, chocolates, and wafers, while those in Indonesia rose 7 percent on the expansion of snacks and chocolates.
Vietnam sales grew 28 percent as it continues its path to recovery.
Sales of non-branded consumer foods group, including the agro-industrial group and commodity foods gained 3 percent to P5.7 billion.