URC Q1 profit slides amid slowing coffee sales, weaker peso
Universal Robina Corp. saw its first quarter net income decline by 12 percent to P3 billion on lower coffee sales, higher inflation and the depreciation of the peso against the US dollar.
Net sales went up by only two percent, driven by the continuous recovery in Vietnam and growth coming from its agro-industrial group.
Operating income and margin pressure remained challenged, posting a 14 percent drop to P3.5 billion due to the weaker performance in the Philippines.
Domestic operations of its consumer branded business excluding packaging fell five percent to P14.3 billion due to tight competition in the snacks and coffee segments.
Core snacking categories of salty snacks, bakery, confectioneries decreased by three percent while URC Beverages saw a nine percent drop.
“The implementation of the excise tax has affected volumes of C2 but value remained buoyant given the offset of the price adjustment we implemented in January,” URC said in a statement.
Sales of the international branded consumer food group, on the other hand, grew 10 percent to P10.8 billion, driven by the recovery in Vietnam and growth of Snack Brands Australia.