URC sets aside P5-B for 2013 capex

ABS-CBN News

Posted at Jan 15 2013 12:25 PM | Updated as of Jan 15 2013 08:25 PM

MANILA, Philippines - Gokongwei-led Universal Robina Corp. has earmarked P5 billion in capital expenditures this year for the expansion of its businesses here and abroad.

In a disclosure to the Philippine Stock Exchange, the food company said it has allocated P4.3 billion for the installation of new lines to expand capacities of its facilities for snack and grocer products and to improve existing beverage equipment here in the country.

Overseas, the firm said it will establish new beverage and bakery lines in Vietnam and expand its salty snacks, chocolates, biscuits and wafer lines in Thailand, Indonesia and Malaysia.

URC has allotted P445 million for maintenance capital expenditures of its commodity group, and another P250 million for the expansion of the firm's feeds division.

Aside from the P5 billion in capital expenditures, the Gokongwei firm has set aside P1 billion for the construction of an ethanol plant. URC is also eyeing to invest another P2 billion in a 40-megawatt biomass-fired power co-generation facility.

URC's net income reached P7.736 billion in its fiscal year ending in September 2012, up 67% from the P4.636 billion in the previous year.

Consolidated sales of goods and services grew 6% to P71.202 billion from P67.168 billion, while cost of sales climbed 4% to P52.731 billion from P50.645 billion.