Universal Robina Reports Strong Core Income Growth
Universal Robina Corp. (URC) has announced a positive financial performance for the first half of the year, with its core net income rising by a solid 3% to reach P6.9 billion. This increase was achieved despite a decline in the company’s net income from its ongoing operations. URC attributed this specific dip to a one-time impairment charge related to the strategic discontinuation of a part of its packaging segment, indicating a targeted effort to streamline operations. URC’s President and CEO, Irwin Lee, expressed strong optimism about the results, highlighting the robust, volume-driven growth of the branded consumer food business as a key factor contributing to the company’s overall positive performance and resilience in the face of various challenges.
Sustaining Top-line Growth Amid Market Pressures
The company’s sales demonstrated significant momentum, climbing by 6% to a total of P85.9 billion. This top-line growth was sustained across all of URC’s key business units, showcasing the company’s broad market strength. The branded consumer foods segment was a particularly strong performer, with revenues increasing by 5% year-on-year to P57.8 billion. While the company faced significant headwinds from rising input costs, especially for commodities like coffee, these pressures were successfully managed. URC effectively mitigated these challenges through strategic cost management efforts and continued expansion and growth in its international business operations, which helped to offset domestic market challenges and secure profitability.
Rewarding Shareholders and Maintaining Future Momentum
In a clear sign of its financial health and commitment to its investors, Universal Robina’s board of directors has declared a cash dividend of P2.20 per share. This latest declaration brings the total dividend for the year to P4.20 per share, marking an impressive 11% increase compared to the dividends paid out in 2024. The dividend represents a substantial payout ratio, equating to nearly 80% of the core net income from the previous year, underscoring the company’s dedication to providing healthy returns for its shareholders. URC leadership remains confident in its ability to sustain this positive momentum moving forward, with a continued focus on delivering value to its customers and generating strong returns for its investors.
