URC six-month bottom line slides 11%

Universal Robina Corp. (URC) logged an 11-percent slide in its first-semester earnings. This settled at P6.7 billion due to an impairment cost related to the discontinuation of its packaging segment.

Excluding this one-time expense, core net income grew by 3 percent to P6.9 billion. The maker of V-cut potato chips and C2 green tea said so in a statement on Friday.

Sales in the January to June period climbed by 6 percent to P85.9 billion. This was on strength across its key business units.

“We are encouraged by our first half 2025 results, notwithstanding various external challenges,” URC president and CEO Irwin Lee said. “The strong volume-driven growth across our branded consumer food business thus far is a testament to the strength of our portfolio.”

Broken down, the branded consumer foods segment contributed P57.8 billion in sales. This meant an increase of 5 percent, driven by the group’s Philippine business.

Domestic sales rose by 5 percent to P39.6 billion as snacks and ready-to-drink beverages drove growth, offsetting challenges in the coffee and noodle segments.

Meanwhile, the international business grew sales by 7 percent to P18.2 billion due to Malaysian food company Munchy’s, as well as growth in Indonesia.

Closed shop

Last year, several of URC’s China entities ceased operations.

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The agro-industrial and commodities group saw a 16-percent surge in sales, which reached P21.7 billion. This was led by the sugar and renewables segment as higher volumes amid the extended milling season provided a boost.

URC opened a new flour mill in Quezon province last December. This boosted daily production capacity to 3,500 metric tons (MT) from 2,180 MT previously.

In launching the P5.4-billion facility, URC said they were seeing an “ever-growing demand” for its products. With this, the flour mill is expected to help maintain product quality.

“We expect to sustain this momentum for the balance of the year as we continue to provide the best value to our customers and generate healthy returns for our shareholders,” Lee said.