C2 recall nightmare continues to weigh down URC’s income
Universal Robina Corp. said net earnings fell 14.2 percent to P6.25 billion in the first half due to the lingering impact of the recall of some of its C2 products in Vietnam last year.
Consolidated net sales went up 9.6 percent to P60.795 billion, driven by strong performances of branded consumer foods Thailand, farms and sugar and renewables, and the additional sales of Australian snack brands.
New Zealand sales improved as volumes remain solid with crackers and wrapped snacks gaining shares with the launch of new products. Vietnam is still on its path to recovery after the relaunch of C2 and Rong Do last Febuary.
The domestic operations of its branded consumer food group saw sales slightly decline to P29.3 billion as strong performances of snackfoods and joint ventures were offset by the underperformance of beverages due to intense competition in coffee.
Higher finance costs of P672 million likewise dragged URC’s profit down.