Universal Robina Corporation (URC) reported a 2% drop in its core net income for the first quarter, totaling P3.8 billion. This decline is attributed to weaker profits from commodities.
The company disclosed that net income from continuing operations also decreased, falling 4% to P4.1 billion. Operating income experienced a similar trend, declining by 2% to P5.4 billion.
Lower selling prices for sugar significantly impacted URC's earnings in the commodities sector.
In contrast, consolidated sales rose 6% year-on-year to P47.9 billion, mainly due to strong growth in branded consumer foods.
Sales in the branded consumer foods segment increased by 9%, reaching P32.2 billion. The Philippine branded foods sector saw a 10% rise to P22 billion, buoyed by volume growth and previous pricing strategies.
Sales from agro-industrial and commodities remained steady at P15.7 billion, with gains in flour and animal nutrition offsetting the decline in sugar.
URC President and CEO Irwin Lee emphasized the company's focus on balancing demand support with margin recovery. He expressed caution regarding potential inflationary impacts stemming from geopolitical issues in the Middle East.
We remain mindful that any inflationary spillover from the Middle East conflict could pressure consumer demand, and we will stay agile.
Irwin Lee, President and CEO of URC