URC full-year earnings slide 4% to P11B
Universal Robina Corp. (URC) reported a slight decline in earnings in 2025 as higher costs of coffee input and lower foreign exchange gains weighed on its bottom line.
On Friday, the Gokongwei-led firm said core net income attributable to the parent slipped 4 percent to P11 billion last year. This was broadly in line with the performance of its operating income.
URC said total operating income fell 4 percent to P16 billion. This mainly reflected “prolonged abnormally elevated coffee input costs,” which squeezed margins during the period.
Despite the profit decline, URC posted volume-led revenue growth, with consolidated sales rising 4 percent year-on-year to P168 billion. This was attributed to a broad-based volume expansion across its businesses and improved execution in key markets.
Sales from the branded consumer foods (BCF) segment reached P115 billion, up 5 percent. The Philippine unit accounted for P79 billion, growing 5 percent due to sustained volume growth, tighter in-store execution and pricing discipline.
Meanwhile, BCF International posted P36 billion in sales, up 4 percent. URC said the international business benefited from scale and conversion efficiencies across major markets. This helped offset weaker demand linked to geopolitical tensions in Indochina.
URC president and CEO Irwin Lee said the company remained focused on strengthening its core businesses while navigating temporary commodity headwinds.
“Temporary commodity headwinds, particularly prolonged abnormally high coffee input costs, compressed margins and muted reported growth, but the franchise remains robust,” Lee said.
He added that as coffee costs normalize, URC expects its current volume momentum to translate into market share gains and margin recovery.
Meanwhile, URC’s board approved a cash dividend of P2.10 per share, payable on May 7, 2026, to shareholders on record as of April 10, representing a 5-percent increase from the previous year.
In a separate disclosure, URC also disclosed that it would sell a 21-percent stake in Nissin Universal Robina Corp. to partner Nissin Foods Asia Co. Ltd. (NFA) as the companies refine their collaboration in the noodles business.
Once completed, NFA’s ownership in the joint venture will rise to 70 percent, while URC will retain 30 percent and continue serving as the local operating partner.
