Universal Robina Corporation on Tuesday posted a net income of P11.6 billion for pandemic year 2020, a 15% increase versus 2019.
Net sales for 2020 reached P133.1 billion, a 1% decline versus 2019 on a reported-peso basis but up 1% on a constant currency basis.
Trading conditions and consumer sentiment were affected by the COVID-19 health crisis. Despite drawbacks, the company gained significant market share and performed ahead of competition.
Better cost management and favorable input prices drove operating income up to 7%, ending at P16 billion, with improved margins versus 2019. COVID-19 related expenses covered investments such as safeguarding employees and supporting operations.
URC's financial position remains strong, with a cash balance of P18.9 billion and a low gearing ratio of 0.42. Net debt amounted to P22.1 billion, close to last year's levels.
Domestic revenues for branded consumer foods were flat at P61.2 billion. Growth of snacks, noodles, and other filler type categories were able to offset the decline of out-of-home consumption categories such as ready-to-drink beverages and candies. Sales of domestic and international branded consumer foods amounted to P103.6 billion.
International revenues hit P41.2 billion, 5% lower versus last year in peso terms, but flat in local currency basis. Growth in Oceania was able to offset the slower recovery of other ASEAN markets.
Sales of agro-industrial & commodities businesses also saw a 7% increase, reached P29.6 billion. The Commodities Foods Group posted strong growth of 21%, with Sugar & Renewables (SURE) growing 33%. The acquisition of Central Azucarera de La Carlota and Roxol Bioenergy Corporation from Roxas Holdings, Inc. contributed to the growth of SURE. Agro-Industrial Group's sales declined by 10%, due to the downsizing of its hog farming operations.
"The best response to the challenges we face with this crisis is to push forward, not to pull back. We are focused on better serving our consumers, our customers, and our communities. Consumption of our products is not likely to dissipate; in fact, the relevance of our categories in consumers’ lives potentially increases as we adjust to changing consumer and shopper trends. As we look to the future and the new normal, we remain well-positioned for the long term to delight everyone with good food choices," URC President and CEO Irwin Lee said.
