URC reports loss in Q1; RLC profits flat

ABS-CBN News

Posted at Feb 16 2009 01:01 PM | Updated as of Feb 16 2009 09:56 PM

The Gokongwei group's food and beverage unit, Universal Robina Corp. (URC), posted an unaudited net loss of P232 million for the first quarter of fiscal year 2009, reversing year-earlier profits of P234 million.

In a statement, URC said the decline was caused primarily by foreign exchange and mark-to-market losses from financial assets as bond prices dropped worldwide.

However, the company said its consolidated net sales and services increased by 22.2 percent to P13.3 billion, owing largely to the P10.4-billion contribution of its branded consumer foods segment.

URC said its international operations remained strong, with net sales rising 41.3 percent to $66.3 million. The company's local branded operations, on the other hand, showed a resilient growth of 17 percent at P6.9 billion in sales, driven by the snackfoods segment.

URC noted that its "beverages had flattish growth as we revamped our distribution system to improve breadth and depth of products in the trade. Groceries sales declined slightly, as we experienced some out-of-stock situations for our noodle business."

Meanwhile, property developer Robinsons Land Corp. (RLC) reported that its unaudited October-December 2008 net income ended flat at P680 million, with revenue growth up 3 percent to P2.38 billion from P2.32 billion in the same months in 2007.

The company's rental and sales, which grew 6 percent, "were tempered by the decline in revenue growths for hotels and interest income" as well as higher realized costs from condominium units and increased construction costs.

URC and RLC are part of conglomerate JG Summit Holdings Inc., which also has interests in air transportation, banking, hotels, petrochemicals, power generation and telecommunications.