MANILA, Philippines - Strong sales of Great Taste coffee and C2 drinks in the country helped boost Gokongwei's Universal Robina Corp. (URC) profits.
This has helped URC report a 38.7% increase in net income to P8.49 billion net income for the nine months of its fiscal year. URC's 2013 fiscal year began on October 2012 and ends September 2013.
The company reported net sales grew 13% to P60 billion in the 9-month period, driven by its Philippine-branded consumer foods business.
URC's operating income jumped 32% to P7.6 billion, as lower prices of soft commodity inputs and double digit increases in sales volume resulted in better margins for branded foods.
"Aside from higher operating income, the increase (in profits) was due to higher other revenues as the company realized one-time gains from the sale of its investment portfolio last January and lower finance cost due to short and long term debts retirement," URC said.
URC's branded consumer foods (BCF) group posted 14% sales to P47.65 billion in the nine-month period.
During the period, BCF Philippines posted 22% higher sales to P30.87 billion, driven by Great Taste coffee and C2 drinks. URC also makes snacks and chocolates such as Chippy, V-Cut, Cream-O and Nips.
Net sales of URC's international business jumped 10% to $387 million, with higher sales of C2 and Rong Do drinks in Vietnam and salty snacks and chocolates in Indonesia.
URC said it is the market leader in biscuits and wafers in Thailand, while C2 is now the number one ready-to-drink tea brand in Vietnam.
URC's commodity foods group revenues went up 16% to P6.8 billion, and sales of agro-industrial group rose 2% to P5.58 billion.