Universal Robina sets lower capex amid decline in income
After seeing a decline in its net income in 2017, listed food manufacturing giant Universal Robina Corporation (URC) has earmarked a lower capital spending budget of P8 billion this year.
In a filing with the Philippine Stock Exchange, URC revealed that its income last year went down by 15.4 percent to P10.8 billion from P12.8 billion on the weight of higher costs and expenses.
Meanwhile, its consolidated net revenues in 2017 improved by 11 percent to P125 billion.
URC said its sales from domestic operations were slightly lower at P59.18 billion due to lower volume and unfavorable mix in the coffee category. This, in turn, pulled down the sustained growth performance in its snack brands and the recovery of its ready-to-drink beverages.
Meanwhile, international sales grew by 30.1 percent to P42.87 billion in 2017 on the back of the full-year consolidation of Snack Brands Australia (SBA) and growth felt by its operations in Thailand and Malaysia, which were partly offset by Vietnam’s slower than expected recovery.
To fund its expansion, the company set aside P8 billion for its capital expenditure (capex) this year.
Of this, P5.5 billion will be spent for expansion of the company’s capacities as well as improvement of the handling, distribution, quality control, and operational efficiencies throughout its branded foods group.
The rest will be to strenghten the company’s commodity foods group operation as well as its agro-industrial group.