Forex gains and currency hedges save the day for Universal Robina Corp.
The Gokongwei family’s Universal Robina Corp. reported a robust 29.2-percent growth in its net income to P8.4 billion in the first half of its fiscal year, with unrealized forex gains and valuation gains from financial instruments related to its purchase of Griffin boosting performance.
The company’s sales grew by only 5.2 percent in the six months ending March 2016 to P58.6 billion, with its operating income growing by less than five percent to P9.4 billion from P8.9 billion because of higher selling and distribution costs and administrative expenses, its disclosure to the stock exchange show.
Its gains from the valuation on financial assets and instruments, however, shot up to P945 million from a loss of P23.6 million in the same period last year. It also reported forex gains of P375.7 million in the six month period from a loss of P311.6 million in the same period last year.
Financial assets held by Universal Robina totalled P1.2 billion at the end of March from just P401.7 million at the end of September 2015. The company’s investments held for trading amounted to P388.4 million at the end of March from nothing, and its derivatives were valued at P769.1 million at the end of March from just P401.7 million at the end of September 2015.
Universal Robina said it had entered into a foreign currency forwards arrangement amounting to some NZ$322.3 million. The company bought the holding company that owns Griffin Foods Ltd. for NZ$233.7 million
Griffin’s Foods is New Zealand’s leading snack maker which it is using as a springboard to Australia and New Zealand and other markets. (By: Eileen A. Mencias)