Business

URC Q2 profit booms as eat-at-home-demand soars amid COVID-19

With most people staying home because of the coronavirus pandemic, the food and beverage arm of the Gokongwei family saw a 76% jump in its net income in the second quarter to P3.8 billion.

Universal Robina Corp. attributed the increase in profit to its strong operating performance, foreign exchange gains and disciplined cost control.

Operating income rose 16% to P4.3 billion while net sales went up to P34 billion on strong growth in snack foods, noodles, powdered drinks, animal feeds, flour, and sugar.

For the first half, URC’s profit expanded by 13 percent to P6 billion while net sales were steady at P67.4 billion.

Domestic and international branded consumer foods accounted for P50.9 billion of the total sales.

The agro-industrial and commodities businesses continue to be a significant and consistent revenuencontributor with sales rising 13 percent to P16.5 billion.

“The current uncertainty driven by Covid-19 is still evolving but we are motivated by the fact that business results in the first half turned out better than our severe lockdown forecasts. While we have business continuity plans quickly set in motion, we were bracing for the worst due to quarantine restrictions, supply chain disruptions and fast demand shifts,” said
Irwin Lee, president and CEO of URC.

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